MMH May 2020

PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION, WAREHOUSING AND MANUFACTURING
th
th
RSARY
mmh.com A N N I VE
May 2020
Supply chain
disruptions and
Covid-19 16
SPECIAL REPORT
Top 20 system suppliers 22
INFORMATION MANAGEMENT
ERP expands alongside WMS 28
LIFT TRUCK SERIES
Lift truck innovation 32
EQUIPMENT REPORT
Rack: Go inside Coca Cola’s
Florida warehouse 38
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UP FRONT BREAKING NEWS YOU SHOULD KNOW
Vargo and Körber announce alliance

Vargo, a leading materials handling its design solutions for customers.
systems integrator, announced an COFE WES manages all ele-
alliance partnership with Körber, ments of the outbound workflow,
a global provider of software and synchronizing and sequencing
materials handling automation. equipment, devices and personnel
This alliance provides a referral while providing real-time visibility
program through which Körber and controlling automation, labor
will offer Vargo’s Continuous and other elements.
Order Fulfillment Engine (COFE) “Today’s supply chains are under
warehouse execution system more pressure than ever before,”
(WES) and other Vargo solutions in said Chad Collins, chief executive products, suppliers, distribution
North America. In turn, Vargo will officer for Körber Supply Chain, channels or competition, we provide
provide Körber’s warehouse man- Software. “To handle any complexity a range of solutions to fit any busi-
agement system (WMS) as part of that comes their way, be it more ness size or strategy.”
S&H Systems partners

with Exotec Solutions FOG Software Group acquires
S&H Systems, a single-source, full-service integration com- ProShip from Quadient
pany, has added another robotics partnership to its roster of FOG Software Group, a division
integration options. of Vela Software and Constellation
Exotec Solutions manufactures Skypod, a goods-to-person Software, acquired ProShip from
order preparation system that adds flexibility and scalability Quadient, formerly Neopost.
for e-commerce and online retail Brookfield, Wisc.-based
mechanization. ProShip is a leader in enterprise
“Our partnership with Exotec parcel shipping solutions. Their
Solutions adds exciting new options customers include 25% of the
for our e-commerce clients, including National Retail Federation’s Top
a decreased installation and execution 100 retailers who ship parcels,
timeline,” said Jeff Roberts, vice presi- plus manufacturing, healthcare and logistics
dent of systems sales at S&H Systems. companies.
“Exotec’s modular design is ideal for today’s evolving e-com- Following the acquisition, ProShip will
merce hubs, with the ability to scale quickly and seamlessly.” operate as an independent division of FOG
The Skypod system offers a high-density solution that is Software Group while continuing to develop,
easily modified to adapt to the unpredictability of food and enhance, service and support its carrier-com-
beverage, electronics and general retail industries. To scale the pliant software solutions for medium- and
system, additional racks and robots can be introduced without high-volume shippers.
performance interruption.
Rice Lake acquires Postea

Rice Lake Weighing Systems Current plans are for Rice Lake. “We firmly
acquired The Postea Group, a operations to remain believe dimensioning
Boston-based developer and in Boston. will be an essential,
manufacturer of dimensioning “Dimensioning is emerging market.”
equipment and software. being utilized more Rice Lake Weighing
Postea has been engineering and more, along Systems is a fami-
and producing dimensioning tech- with weight informa- ly-owned, ISO 9001
nology since 1996. The acquisition tion, to determine certified corporation,
allows Rice Lake to continue devel- freight charges, load and has been manufac-
opment of existing products as well optimization and turing and distributing
as introduce new products in the warehouse capacity calculations,” weight-related products and sup-
field of dimensioning technology. said Mark Johnson, president of plies since 1946.
mmh.com M O D E R N M AT E R I A L S H A N D L I N G / M ay 2020 3
Essential.
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COVER STORY
®
COVER STORY
16 Supply chain
PRODUCTIVITY
SOLUTIONS FOR tthh
disruptions DISTRIBUTION,
WAREHOUSING AND RSARY
and Covid-19 MANUFACTURING A N N I VE
What is different about

Covid-19 from other
supply chain disruptions?
60 seconds with...
George Prest,
MHI
FEATURES
SPECIAL REPORT DEPARTMENTS & COLUMNS
22 Top 20 system suppliers 3 Upfront
Although the coming year promises to paint a different picture, 7 This month in Modern
the industry continued to build upon record growth in 2019.
12 Lift Truck Tips: Mobile computing
INFORMATION MANAGEMENT 14 Packaging Corner: Protective packaging
28 ERP expands alongside WMS 42 Productivity Solutions
ERP solutions serve as the transactional foundation for many 45 Special Section: COVID-19 Open
companies. For distribution organizations, a key ERP concern for Business
continues to be whether a system’s WMS functions are sufficient. 50 Focus On: AGVs & Mobile Robots
More ERP vendors are expanding into advanced WMS functions
54 Product Showcase
as they evolve to meet complex warehouse fulfillment needs.
58 60 seconds with...
LIFT TRUCK SERIES
NEWS
32 Lift truck innovation:
8 It’s still the right time to invest in
In their own words next-generation technologies
Modern talked to five leaders in the lift truck industry to find out
9 AlixPartners: Grocers need to take
what they expect the future will bring to the market. immediate action to remain viable
EQUIPMENT REPORT 10 ALAN creates real-time logistics
38 Warehouse with a life-saving mission map, MHI donates $25,000 to sponsor
project
In Jacksonville, Coca-Cola Florida had just opened a new high-
density overflow warehouse when it took on a mission never 11 MHI launches Modex 365 virtual trade
imagined during its design—supplying beverages for a pandemic. expo experience
Preparedness and simplicity are key to its success under dire
circumstances.
Modern Materials Handling® (ISSN 0026-8038) is published monthly
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THIS MONTH IN MODERN
EDITORIAL OFFICES
111 Speen Street, Suite 200 MICHAEL LEVANS
Framingham, MA 01701-2000 GROUP EDITORIAL
(800) 375-8015 DIRECTOR
Michael Levans
Hyper-local fulfillment
GROUP EDITORIAL DIRECTOR
[email protected]
Bob Trebilcock
takes flight
EXECUTIVE EDITOR
[email protected]
Noël P. Bodenburg
B
EXECUTIVE MANAGING EDITOR
[email protected] ack in March at Modex 2020, two of the On the heels of the pandemic, this year
Josh Bond common denominators present in many our panel chose to place their focus inside
SENIOR EDITOR
[email protected] of the conversations I had were the the four walls as so many of our warehouse
Roberto Michel effects of the ongoing labor shortage inside and DC operations quickly found themselves
EDITOR AT LARGE
[email protected] warehouse/DC operations and the emerg- on the front lines of meeting an unprece-
Bridget McCrea ing concept of hyper-local fulfillment, often dented challenge.
EDITOR AT LARGE
[email protected]
referred to as micro-fulfillment. And as Klappich explains, the pandemic situ-
Fast forward two months, and we find the ation has supercharged the need for hyper-local
Jeff Berman
GROUP NEWS EDITOR labor shortage issue could take a rapid turn fulfillment—and now’s the time to nail down the
[email protected]
for the better over the next couple months process. “Customers want instant gratification,
Wendy DelCampo
SENIOR ART DIRECTOR as recovery kicks into gear, while the concept so the days of distribution centers being hun-
[email protected]
of hyper-local fulfillment has not only moved dreds of miles from them are over,” he says.
Polly Chevalier
ART DIRECTOR front and center in discussions within senior- To get started, Klappich suggests supply
[email protected] level supply chain circles, but it’s become a chain organizations need to do three things. To
Daniel Guidera
ILLUSTRATION
vital link for many around the globe during start, companies need to develop their internal
[email protected] the pandemic. network design capabilities, invest in the nec-
Kelly Jones Hyper-local fulfillment relies on a highly essary technology and systems, and grow inter-
PRINT/ONLINE PRODUCTION
MANAGER distributed network of very small fulfillment nal competencies around these systems.
[email protected]
centers located close to consumers that Second, the organization needs to start
Brian Ceraolo can profitably complete same-day orders— modeling and mapping out processes to
PRESIDENT AND CEO
[email protected]
think of grocery orders that were fulfilled at ensure they build the appropriate hyper-local
your local store and either dropped at your fulfillment operation for their business. “And
PEERLESS MEDIA, LLC
www.peerlessmedia.com house or ready for curbside pickup. The third,” says Klappich, “since warehouse man-
concept was a response to growing e-com- agement is a core component of hyper-local
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mortar sales and was gaining momentum operations to develop the right warehouse
Email: [email protected]
Phone: 847-559-7581
well before the pandemic set in—which was management system (WMS) strategy.”
Mail: Modern Materials Handling certainly fortuitous. And, while retail is the most obvious indus-
P.O. Box 677
Northbrook, IL 60065-0677 I had the chance to discuss the concept try to adopt hyper-local fulfillment, Klappich
For reprints and licensing
please contact Brett Petillo with Dwight Klappich, vice president of supply says retailers are not alone in the need to pro-
877-652-5295, ext 118
[email protected]. chain research at Gartner. Klappich joined me vide an assortment of goods at the best price
ENEWSLETTER SUBSCRIPTIONS along with panelists Ian Hobkirk, founder and with delivery as fast as possible—and through
Sign up or manage your FREE
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Advisors, and Norm Sanez, managing director gertips. “We’re seeing large food and bever-
at supply chain consultancy St. Onge, in the age distributors, 3PLs and even telecoms move
2020 Technology Roundtable I conducted for to this model as they recognize the need to
peerlessmedia.com
our sister publication Logistics Management. move forward more quickly,” he adds.
Official Publication of
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M O D E R N M AT E R I A L S H A N D L I N G / M AY 2020 7
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TECHNOLOGY ANALYSIS
It’s still the right time to invest

in next-generation technologies
Counter-intuitive, perhaps, but adoption of technologies like mobile robots
and 3D printing will be accelerated as a result of the pandemic.
BY BOB TREBILCOCK, EXECUTIVE EDITOR
AT FIRST GLANCE, YOU MIGHT research firm’s 2020 supply

THINK the current business shutdown chain survey. Perhaps most
will put the brakes on the adoption of important, the survey was
next-generation technologies like 3D in the field at the end of
printing, autonomous mobile robots March, while we were all
and blockchain. After all, when the experiencing a lockdown.
dust settles, many companies that The insights are fresh and
were doing business in March may be reflect our current situation.
gone or on their last legs when busi- It may seem intuitive
ness resumes in the coming weeks that companies strapped
or months. The remaining businesses for cash will think twice
may be short of cash. about further investments
But Jordan K. Speer, research man- in automation and tech-
ager of Global Supply Chain at IDC, nology, especially given
argues that this is a time of “chal- the number of people who
lenge meeting opportunity,” and that have suddenly found them-
the adoption of next-generation tech- selves in the unemploy-
nologies “will be accelerated, some ment line. Speer, however,
immediately, some over time, by the believes the factors that
demands made on the supply chain were driving automation
by this global pandemic.” in the supply chain as
Those are some of the takeaways recently as two months ago
from Speer’s recent “IDC Perspective: have not gone away—not
Supply Chains in the Post-Covid-19 even the shortage of labor.
Era: Changes to Expect.” It’s a great Rather, she thinks they
read, based on “IDC, 2020,” the may be greater now. She
8 M A Y 2 0 2 0 / M O D E R N M AT E R I A L S H A N D L I N G mmh.com
points out that the top drivers of For reasons such as those, Speer industry remains strong. As I noted
supply change in the recent survey expects to see an uptick in the on a recent webinar, consumers may
weren’t different in late March than adoption of robotics, including cut companies some slack during a
you would’ve expected in January: piece-picking robots. And lon- crisis when the item they usually
the need to adopt new technology, ger-term, she writes that we can receive in two days isn’t delivered for
handling growth, keeping up with “expect an uptick in ‘dark ware- a week, or longer. But when the crisis
competition, and internal demands. houses’—fully automated facilities is over, most consumers will be less
She expects to see technology whose systems manage warehouse forgiving. The companies that win will
and automation investments across operations without humans.” be those that continue to accelerate
supply chain functions, from plan- Like Speer, I realize the economic investments in their supply chain
ning to manufacturing to order outlook right now is bleak. At the capabilities. Laggards will have no
fulfillment and transportation. And, same time, I think the outlook for our choice but to follow.
Speer doesn’t expect the labor
shortage to go away. FOOD AND BEVERAGE
“Let’s say the economy kicks in,”
AlixPartners: Grocers need to take
immediate action to remain viable
she said. “A lot of people who lost
their jobs will go back to their old
positions. If you consider that many of AlixPartners’ senior consultants action to stay viable and avoid a
the people who lost jobs were in the have released a new report on how deep margin impact as the market
service sector, you have to ask: How grocery retailers can mitigate finan- evolves into its new normal,” the
many waiters or waitresses will sud- cial risk from increasing online gro- report’s authors said. “While most
denly go to work in a warehouse?” cery shopping. grocery stores remain open during
Good point. Among other things, the report the current crisis, many customers
One other consideration: Taking suggests pandemic-driven online are preferring to stay home and
touches out of the process could grocery trends will cost retailers up take advantage of home delivery
take on a whole new meaning to 2.75 points in lost operating-profit and curbside pickup in unprece-
once we’re all back to work. Pre- margins if not offset—such as by dented numbers.”
Covid-19, we talked about making adopting click-and-collect options. Grocers have seen digital sales
processes more efficient by reduc- “Grocers need to take immediate more than double across click-and-
ing the number of times a product
was touched. Efficiency will still be
important post-Covid-19, but so
will minimizing human handling to
keep surfaces as free of contami-
nation as possible.
We’re already seeing commer-
cials from pizza makers touting
touchless cooking and delivery.
Litco International, a producer of
pallets molded under high heat and
pressure is advertising that no one
handles its pallets from the time the
raw materials go into the mold until
they’re touched by your people at
your facility. I expect to see more The report suggests pandemic-driven online grocery trends will cost
suppliers in our industry making retailers up to 2.75 points in lost operating-profit margins if not
similar claims when possible. offset—such as by adopting click-and-collect options.
collect and delivery channels, and SUPPLY CHAIN
growth in digital channels makes ALAN creates real-time logistics map,

a deep dent in operating income. MHI donates $25,000 to sponsor project
Based on history, the authors
expect a significant portion of this The American Logistics Aid Network ALAN is developing an interactive
digital growth to become perma- (ALAN) works to coordinate logistics map that will help organizations nav-
nent once restrictions are lifted. and provide supply chain assistance igate logistics response to disasters,
The report calls upon grocery to disaster relief organizations by and MHI is donating $25,000 to help
retailers to: bringing the expertise and resources make it happen. The map can be
• Make bold capability decisions, of the industry together to deliver used to monitor real-time status of
including relating to e-commerce help sooner. roads, ports and airports in disas-
scaling and outsourcing. ter-impacted areas as
• Track and codify “learnings” well as policy changes
from the current crush to determine at different levels.
what is truly incremental online The interactive map is
business. free of charge to anyone
• Choose customers incentives who needs it. For more
carefully, including not to incentiv- information about this
ize customers into long-term program visit alanaid.
actions that are unprofitable for org/resources.
the business.
mericanSteelAd_MMH12_19.qxp_Layout 1 3/17/20 5:19 PM Page 1
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MODEX 2020
MHI launches Modex 365 virtual

trade expo experience
MHI has created a virtual trade Modex 365 features:
365
show experience to connect attend- • Modex 2020 Seminar Web-
ees with the manufacturing and casts and Podcasts: More than 150 brochures, case studies and exhibitor
supply chain education and solution show floor seminars can now be contacts.
sourcing that Modex delivered in accessed as podcasts and webcasts. • Complete videos of the 2020
March 2020. • Modex 2020 Exhibit Showcases: MHI Annual Industry Report keynote
Modex 365 delivers supply chain These virtual exhibit showcases panel discussion and a show floor
solutions, thought leadership and include video booth tours and other session on unichannel fulfillment.
the latest equipment and technol- solution sourcing details including • News from the Modex 2020
ogy solutions in a digital format to product photos, news releases, show floor including videos and daily
meet attendees’ immediate needs videos, product specifications and show recap videos
at modexshow.com. Modex 365 pro-
vides instant access to virtual booth New blog: Supply Chain Startup
showcases, show news, expo vid- Startups in fields as diverse as robotics, AI, the Internet of Things and
eos, webinars, podcasts and more 3D printing will transform our industry. Starting in May, each Friday,
directly from the 2020 expo. Modern will feature a weekly look at startups at mmh.com.
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LIFT TRUCK TIPS
A system of reality for

the new normal
Visibility is essential for control,
especially when disruption threatens
to leave operations powerless.
By Josh Bond, Senior Editor
S
upply chain professionals are probably dealing with
far more change than they were prepared for. If it’s
true you can’t manage what you don’t measure, the
places in need of a ruler are becoming abundantly clear.
“If you have invested in visibility technology like RFID,
active locationing or other technology with real-time visibili-
ty, you can make the best out of a bad situation,” says Mark
Wheeler, director of supply chain solutions at Zebra Technol- requirements around social distancing.
ogies. “You know where your assets are, and if, for example, On the software side, most of the market is still using
a manufacturer can’t make product A and has to quickly shift telnet or terminal emulation (TE), Wheeler says, but that’s
to B, you have all the info you need to do that.” changing. At the operating system level, there’s movement
Wheeler says the best way to deal with unpredictability toward Android, which he says offers a much more intuitive
is with visibility and flexibility, using technology that can user experience. Once transitioned to Android, companies
adapt—and maybe provides more visibility than is needed have plenty of options to improve user experience.
from day to day. This will support quick adjustments. “They’re focused on rapid onboarding, which is a
“For supply chain executives, one of the mega-trends major and almost hidden cost,” Wheeler says. “If you can
is ‘systems of reality’ as opposed to systems of record,” significantly reduce your four-week average training time,
Wheeler says. “A warehouse management system (WMS) those are hard dollars to the bottom line.”
gets visibility when somebody scans, which requires a Any edge technology will provide location data, which
discrete action and proactive activity. Who knows when it can then be used for real-time alerts or after-the-fact an-
will happen, if it will happen, or if it’s done properly?” alytics. Wheeler says customers often like to “replay” the
The bulk of users are still in a bar code-driven world, day to look for congestion or wasted motion.
he adds, and are using rugged, extended-range scanners “These tools are out there and available, and tend to
up to 70 feet, whether handheld or tethered to a lift truck. be adopted for rolling stock, pallet jacks, lift trucks and
There’s some growth in RFID, such as area readers for places where there’s not necessarily a lot of good data for
tracking inventory at the pallet and case level, especially at optimizing usage, much less real-time path optimization,”
docks where they can cover a large area automatically to Wheeler says. “There are process improvement opportu-
start building a “system of reality.” nities right out of the box. The idea is going from the
The location of goods and equipment is an essential glimpses of reality you had in the past to the constant
starting point for task assignment. A system of reality reality these new systems can deliver.”
can help enforce rules such as, for example, staying six
feet apart. Wheeler notes growing customer interest in Josh Bond is Modern’s senior editor and can be reached at
technology that can help them deal with new operational [email protected]
12 M a y 2 0 2 0 / M O D E R N M AT E R I A L S H A N D L I N G mmh.com
Sponsored by 3PL Central MAKING THE CASE REPORT
M A K I N G T H E CA S E F O R
Warehouse Automation
M A K I N G T H E CA S E F O R
Warehouse Automation
& Scalable Integrations
& Scalable Integrations

Reliant on spreadsheets and point technology systems to run their
growing businesses, third-party logistics companies that upgrade
Reliant on spreadsheets and point technology systems to run their growing
to automated, comprehensive warehouse management system
(WMS) platforms can save 161 hours on manual entry and realize
businesses, third-party logistics companies that upgrade to automated, comprehensive
warehouse management system (WMS) platforms can save 161 hours on
manual entry and realize an average of 22% order growth year-over-year.
PEERLESS
C O N T E N T C R E AT I O N
an average of 22% order growth year-over-year.
W
ith major e-tailers like Amazon driving warehouse partners for these firms’ supply
new buying behaviors across both chains need to be able to process terabytes of
the B2C and B2B sectors, third-party data flawlessly for 24/7 operations. This will re- COVERED IN THIS REPORT:
logistics warehouses (3PLs) are facing pres- quire warehouses to integrate their warehouse
sures to the likes of which they’ve never ex- management systems with a wide range of • How 3PLs can use
technology to hit
perienced before. In a world where consumers systems, such as e-commerce shopping carts, performance targets
have come to expect a smooth and expedient EDI / API integrations, and enterprise-level sup- and meet SLAs
omnichannel buying experience in both their ply chain management software such as ERPs
personal and work lives, 3PLs are increasingly and billing systems.
• Preparing the modern
3PL for success in a
turning to technology to help them meet and Persistent logistics and warehouse competitive environment
exceed these expectations. labor shortage.Warehouses nationwide are
The problem is that many 3PLs are still struggling to find and retain workers just as
• 3PL uses technology to
become a true “BFF” to
using a combination of spreadsheets, manual competitive pressures inflicted from companies its growing customer base
processes, and disjointed proprietary systems like Amazon are steadily increasing. Current
to run their business. Where these approaches trends suggest that the demand for skilled
• Making the case for
warehouse automation
may have sufficed even a few years ago, warehouse workers is outpacing supply by a & scalable integrations
they’re now creating massive inefficien- ratio of 6 to 1.
cies in this “new normal” of e-commerce or Lack of warehouse visibility. Many 3PL
omnichannel fulfillment that most 3PLs are warehouses lack the technology to analyze
operating in or looking to expand into. data and deliver the reporting required to mea- most cases, those demands are spelled out
sure warehouse key performance indicators in service level agreements (SLAs) that 3PLs
KEY PAIN POINTS (KPIs) like order volume and the cost of goods agree to and strive to meet on a daily basis.
There’s been a fundamental change in the way sold. Many also have inefficient processes for To attain those levels of flexibility,
people buy, and 3PLs stand at the epicenter forecasting orders, planning labor, and avoiding 3PLs need accurate, reliable data to utilize
of these shifts. Not only do consumers want to stock-outs. and share with their customers. Without
purchase products in new ways, but they also Razor thin margins. Pressured by their those metrics, there’s no way to establish
expect quality and a variety of delivery options customers to reduce prices and boost their baselines or iterate and improve upon
for online purchases. Here are some key road- competitiveness in the marketplace, 3PLs often existing processes. Using a platform like 3PL
blocks that are keeping small to midsized 3PLs find themselves between a rock and a hard Warehouse Manager, companies gain that
from keeping up with demands: place when it comes to pricing their services. flexibility plus the ability to leverage reliable,
Too reliant on manual warehouse pro- As a result, many of them worry month-to- actionable data both for themselves and for
cesses. Many warehouses still use outdated month about cash flow and about how to eke their customers.
paper-based methods or Excel spreadsheets more profits from their businesses. In this Making the Case, we show how
to manage inventory and perform basic tasks 3PLs can use technology to prepare for
such as shipping and receiving. This process LEVERAGE CUTTING-EDGE WAREHOUSE success in a competitive world, reveal how
is tedious, time-consuming, and costly. It also MANAGEMENT TECHNOLOGY one 3PL has leveraged technology to
creates a high level of inefficiency in an era To operate efficiently and profitably under these help it grow by 794%, and explain how
where more companies are turning to technol- circumstances, 3PLs need technology that the technology provides high levels of
ogy and automation to help them scale up and supports their supply chain ecosystems while ROI for warehouse executives, owners
meet their customers’ needs. also helping them meet customer demands. In and operators. •
Can’t easily expand partnerships and
ecosystems. Currently, 86% of domestic
Fortune 500 companies use 3PLs for logistics Go to: www.mmh.com/
and supply chain functions. Consequently, 3plcentralmtc0520 for a full report.
PACKAGING CORNER
Opportunity in the packaging

department
One man’s ingenuity led to a high-
performance orbital stretch wrapper
that saves time and labor as it protects
shipments from costly damage.
By Gary Forger, Contributing Editor
T
here’s an old maxim—when one door closes anoth-
er one opens. This was very true for a company in
Reading, Pa. In 2008, Tom Brizek’s door business
lost a major customer. Most people those days might have
gone out of business, but not Brizek. He was paid only on
commission and did not have to pay upfront for inventory. doors. Then, they had to wrap the finished assembly for
That was actually an advantage. shipment to contractors. That’s when they started asking if
Instead of withdrawing, he decided to double his stor- Brizek could build orbital wrappers for them. And, a new
age capacity for stocking a line of hollow steel doors and business was born. Today, TAB Industries builds its orbital
frames for schools, hospitals and offices. And, his business wrapping systems for a range of parts that come in odd
doubled. He doubled his capacity again, and the business shapes and long lengths. “These are ones that a turntable
followed. Clearly, Brizek offered what others wanted. But style wrapper can’t handle,” explains Brizek.
not everything. As the photo shows, palletized parts sitting on the tines
As the middle man between the door manufacturer and of a lift truck are presented to the wrapping ring where the
his customers (door distributors who sold to contractors), stretch wrap is applied automatically. The driver never has
Brizek had to protect and ship the doors. That required to get off the truck or transfer the load until it is delivered
wrapping each door by hand. Not exactly a fast process to the shipping department. In one 360-degree wrap, the
nor one that sufficiently protected doors in transit. Cus- entire load is secured and unitized without banding, box-
tomers noticed and something had to change. ing or strapping in less than one minute.
Fortunately, Brizek noticed local farmers wrapping hay As Brizek explains, the Tab Wrapper Tornado increases
bales with orbital wrappers. Unfortunately, the $40,000 price throughput in the packaging department as it reduces the
tag was way beyond what Brizek’s door business could han- footprint needed there. “Packaging departments of three
dle. So, he did the next best thing: He built his own in the fab people can typically cut back to just one person,” says Brizek.
shop that was his primary business before doors. At electrical parts supplier Monti Inc., plant manager Nick
Almost immediately, his customers noticed that doors LaVigne uses the wrapper to protect work-in-process. Parts
arrived consistently packaged and undamaged. Not only often sit on a shelf for weeks before needed. Stretch wrap-
did his damage claims drop precipitously, but so did his ping them “reduces oxidation and cross contamination as
worker comp claims on the wrapping line. There’s a win/ well damage during transport in the plant,” he says.
win. But, the story was about to get even better.
While Brizek shipped basic doors to his distributors, Gary Forger is a contributing editor with Modern and can
they did value-add work that required unwrapping the be reached at [email protected].
Meal kits. New shoes. Home décor. Only one container is flexible enough, clean enough,
cushioned enough and strong enough to ship all the products today’s consumers shop for online.
They click it, corrugated ships it. Cushioned. Clean. Extraordinary.
Learn more at boxesareextraordinary.com

MODERN cover story
Supply chain
disruptions
and Covid-19
What is different
about Covid-19
from other
R ecently, I taught my first full class in front of a computer instead
of in front of my students. Like nearly all universities, Penn State
canceled in-person classes and moved to remote/online instruction.
My class is for seniors majoring in supply chain management, and it is (and
will be) somewhat awkward to teach a case-based discussion course online.
supply chain
Per the syllabus, the already-scheduled topic of supply chain risk manage-
disruptions? ment is taking on a whole new urgency for many firms, industries and society as
a whole with the spread of Covid-19. It seemed like a good time to share some
of what we are and will be talking about in class with our supply chain partners.
A caveat: My research expertise is in supply chain decision-making. With
BY BRENT MORITZ, Christopher Craighead, now at the University of Tennessee and a Supply
CONTRIBUTING EDITOR
Chain Management Review, a sister publication of Modern, contributor, I
co-wrote a popular case about how firms can deal with a supply chain dis-
ruption. Yet, that focused on the bankruptcy of a supplier and the impact
on a Tier 1 firm. Today the news is about Disruption with a capital “D.” So,
what are some of the differences between Covid-19 and other disruptions?
There could be more, but I discuss seven dimensions here, which are sum-
marized in the table.
1. Geography. In most cases, a supply chain disruption is limited to a
region or country. For example, we are used to hurricanes hitting Florida,
or earthquakes in California. This past year, we saw massive wildfires in
Australia. No one should discount the suffering after natural disasters like
Hurricane Katrina on New Orleans and other areas. Yet one difference with a
pandemic like Covid-19 is that it is hitting the entire world. This is important
TABLE 1 TABLE 1 TABLE 1
Dimensions
Dimensions
Dimensions ofsupply
Dimensions
of supply
of supply chain chain
of supply
chain disruptions
disruptions
chain
disruptions
disruptions
for COVID-19forCOVID-19
Covid-19
for COVID-19
for
DIMENSION
DIMENSION
DIMENSION
TYPICALTYPICAL
DISRUPTIONS
DISRUPTIONS
TYPICAL DISRUPTIONS COVID-19COVID-19 COVID-19
DIMENSION TYPICAL DISRUPTIONS COVID-19
Geography
Geography
Most
Geography
disruptions
Most disruptions
areMost
local disruptions
or
areregional.
local orare
regional.
local
COVID-19
or regional.
COVID-19
is widespread
is
COVID-19
widespread
and global,
is widespread
and global,and global,
Geography Most disruptions are local or regional. affecting all
affecting
regions.
allaffecting
Covid-19 regions. all regions. and global,
is widespread
Scope ScopeLimited
Scope
scope:
Limited Fewer
scope:
Limited
industries
Fewer
scope:
industries
Fewer industries
Widespread affecting
Widespread
scope all regions.
affecting
Widespread
scope both
affecting
scopebothaffecting both
affected (i.e.,
affected
a hurricane
(i.e.,
affected
a hurricane
disrupts
(i.e., adisrupts
hurricane
goods
disrupts
(like
goods
toilet(like
paper)
goods
toilet
andpaper)
(like
services
toilet
and paper)
services
and services
Scope Limited
the petrochemicalscope: the Fewer
the petrochemical
industry). industries
petrochemical
industry). industry). Widespread
(haircuts, (haircuts,
restaurant meals). scope
restaurant
(haircuts, meals).
restaurantaffecting
meals). both goods
affected (i.e., a hurricane disrupts (likeoftoilet
Closure ofClosure
sporting events,paper)
sporting
Closure cruise
of
events,and
sporting services
cruise (haircuts,
events, cruise
the petrochemical industry). ships, schools/universities, restaurant
ships, ships,meals).
schools/universities,
schools/universities,
etc. etc. etc.
Closure of sporting events, cruise ships,
Demand Demand Disruptions
Demand
Disruptions
most often
Disruptions
most
affect
often
supply,
most
affectoften
supply,
Affects
affect supply,
demand,
Affects and
demand,
Affects
possibly
and
demand,
supply.
possibly
and
supply.
possibly supply.
vs. supplyvs. supply
sometimes
vs. supply
sometimes
demand.sometimes
demand. demand.
schools/universities, etc.
Demand
Prior planning
Prior planning Disruptions
Disaster
Prior planning
planning most
Disaster has beenoften
planning
Disasterhas
done, affect
planning
been done,
has been
Limited
done, Affects
disaster
Limited demand,
planning
disaster
Limitedfor
planning and
disaster
global possibly
forplanning
global supply.
for global
vs. supply
and experience
and experience
and supply,
andprior
experience
and sometimes
experience
prior and priordemand.
experience
is available.
experience
is available.ispandemic,
available.pandemic,
with limited
with
pandemic,
prior
limited
experience
with
priorlimited
experience
prior experience
(1918 Spanish
(1918Flu).
Spanish
(1918
Flu).
Spanish Flu).
Prior planning Disaster planning has been done, Limited disaster planning for global
and experience
Financial Financial
system system
Low and
Financial
to prior
to experience
moderate
Low
system moderate
correlation is available.
Low tocorrelation
moderate correlation Highpandemic,
High correlation correlation
withHigh
globalwithglobal
limited
correlation
with with prior
global experience
with global
with
financial
globalsystem.
with
financial
global
system.
financial system.
financial system.
financial
(1918 system.
financial
Spanishsystem.
Flu).
Term
Financial Term Short-term
system Term
Low Short-term
needs
to forShort-term
moderate needs
emergency
for emergency
needs for emergency
correlation Longer-termLonger-term
emergencyLonger-term
emergency
service needs
High correlation emergency
service needs
with globalservice needs system.
financial
services
with(i.e.,
services
flood(i.e.,
global rescues).
services
flood rescues).
financial (i.e., flood rescues).
system. (i.e., hospital
(i.e.,beds,
hospital
ventilators).
(i.e.,
beds,
hospital
ventilators).
beds, ventilators).
Human
Termimpact
Human impact
Localized
Human impact
Localized
human impact,
Short-term human
Localized
needs impact,
forhuman impact,
emergency Widespread Widespread
human impact,
Widespread
Longer-termhumanwith
impact,
human
emergency with
impact, withneeds
service
and behavior
and behavior
with
andlimited
behavior
withduration.
limitedwith
services (i.e., duration.
floodlimited duration. unknown duration
rescues). unknownand
(i.e., duration
unknown
unknown
hospital andduration
impact.
unknown
beds, andimpact.
unknown impact.
ventilators).
Public fear
Public
is short-term,
fear Public
is short-term,
andfear is short-term,
and Public
and fearPublic
is longer-term
fear Public
is longer-term
and
fearrisks
is longer-term
and risks and risks
most risksmost
are visible
risks are
most
(i.e.,visible
experiencing
risks(i.e.,
are visible
experiencing
(i.e.,
areexperiencing
invisible/unknown.
are invisible/unknown.
are invisible/unknown.
Human impact a tornado Localized
aortornado human
earthquake).
or
a tornado impact,
earthquake). with
or earthquake). Widespread human impact, with unknown
and behavior limited duration. duration and unknown impact.
Source: Author
Source: Author
Source: Author
Public fear is short-term, and most Public fear is longer-term and risks are
risks are visible (i.e., experiencing invisible/unknown.
a tornado or earthquake).
Source: Author
because under normal circumstances, resources from delayed. This includes things like the cancellation of all
one region can support affected regions. For example, sporting events, idled cruise ships, empty hotel rooms
utilities send repair crews in from out of state, and and the widespread cancellation of airline flights. In
even firefighters and equipment from the United States addition, most shops and restaurants are closed.
recently assisted in Australia. This is very difficult to do The week before I wrote this article and before the
when everyone is simultaneously affected. official shutdown, I went into my local barber shop (as
2. Scope. Beyond geography, Covid-19 has nearly yet we had no Covid-19 cases reported in my county
unprecedented scope. In an ordinary disruption, we or nearby). Six employees were standing outside; I was
might see a few key industries knocked offline for the only customer in the shop the whole time. Here in
weeks or months: Hurricane Harvey took much of the State College, much of the economy revolves around
U.S. Gulf Coast petrochemical industry offline for sev- university students, all of whom are now staying home.
eral weeks, yet West Coast refineries were not affected. All of this will have knock-on effects throughout the
Unique about Covid-19 is that it is affecting both entire economy.
goods and services. Clearly demand has increased for 3. Demand vs. supply. Many supply chain disrup-
masks and hand sanitizer, so it is logical those items tions affect supply. I have already mentioned several, and
would be in short supply. However, there is fundamen- in my class the previously assigned reading was about
tally no increase in demand for toilet paper, so short- a well-known fire in a Philips Electronics chip plant in
ages there are unusual and related to human behavior. 2001 and the impact on major mobile phone makers
But, the impact of Covid-19 is that demand for services Nokia and Ericsson. At the time, Nokia had 27% of the
is greatly diminished. We cannot stockpile an inventory global cell phone market and Ericsson had 12%. Light-
of services or experience goods, so those are, at best, ning struck the Philips plant, causing a loss of chips, yet
mmh.com M O D E R N M AT E R I A L S H A N D L I N G / M AY 2020 17
MODERN cover story
the real damage was that the plant was celing all international flights and 40% reduce their spending. Yet demand will
contaminated and could no longer proof their domestic capacity. Beyond this, also decrease because the perception of
duce chips for these and other firms. demand will be affected even when there conspicuous consumption of new goods
However, how Nokia responded was is virtually no disruption in supply. For is likely to mute demand in the face of a
unique—with fast communication, an all- example, look to the Fukushima Daiichi global disaster.
hands-on-deck approach and coordination nuclear disaster following the earthquake 4. Prior planning and experi-
that saw them weather the storm with and tsunami in Japan in 2011. ence. For many disruptions, planning
minimal disruption. Ericsson took a much Shortly after the disaster, luxury and prior experience are guides. For
slower approach and was far more vulner- goods maker LVMH closed 50 stores in example, factories in the Midwest and
able to this supply disruption. Japan. The supply chain for high-end elsewhere have tornado-safe locations
In the end, Nokia gained 3% of the merchandise was relatively unaffected, for their employees. Elementary schools
global cell phone market (mostly from yet few people wanted to be seen with a regularly practice fire and tornado drills.
Ericsson), and subsequently Ericsson new Louis Vuitton handbag when tens Refineries in the Gulf Coast plan for
ended up exiting the handset business. of thousands of their neighbors were hurricanes, and hospitals have emer-
There have been some supply disrup- suffering. Other luxury brands were gency generators. Yet, limited prior plan-
tions due to Covid-19, and there will similarly affected. ning exists for a global pandemic such
be more disruptions in manufacturing, In the case of Covid-19, the size and as Covid-19. Yes, the United States is
distribution and transportation in the duration of the impact is not clear. For supposed to maintain a strategic stock-
upcoming weeks. example, one can easily imagine that the pile of ventilators and other supplies,
However, Covid-19 is (and will be) demand for new cars will decrease, both yet, as we are learning, no amount of
affecting demand. Perhaps you have seen because some individuals may lose their inventory would be sufficient under the
news reports about major airlines can- jobs or see hours cut and understandably worst-case scenarios.
Covid-19 and the materials handling industry
H ere are some things our indus-

try is doing in response to the
global pandemic crisis.
employees will be able to choose
from a variety of PPO (Preferred
Provider Organization) and HSA
bill not only extends the credits
through Dec. 31, 2020, but facility
managers can also apply for credits
• PMMI, The Association for (Health Savings Account) health retroactively for any fuel purchases
Packaging and Processing Tech- plans. Members will also have ac- made in 2018 and 2019. While April
nologies, is offering an association cess to UnitedHealthcare’s Choice is typically tax month, companies
health plan to its members, extend- Plus care provider network. Eligible now have until July 15 to file.
ing affordable health care to small member companies also will have • In response to the pandemic
and medium-sized manufacturing access to supplemental benefits, and following the recommendations
companies in approved states. In including dental, vision and life. of the Mexico Ministry of Health,
states where the association health • The Propane Education & PMMI, The Association for Packag-
plan is not available, PMMI will Research Council is encouraging ing and Processing Technologies,
connect manufacturers with avail- propane forklift users to take ad- has canceled Expo Pack México
able small-group options in their vantage of the Alternative Fuel Tax (June 2-5, 2020, Expo Santa Fe
states. The plan, called NAM (The Credit, which was recently passed México, Mexico City). Even though
National Association of Manufactur- by the U.S. Congress as part of the the in-person event is not taking
ers) Health Care, was developed to Further Consolidated Appropria- place, all of the online components
meet the unique health care needs tions Act, 2020. Businesses operat- of Expo Pack México will remain
of manufacturers. It will offer a ing propane forklifts that apply for available to exhibitors and attend-
portfolio of health benefits options the tax credit will be able to claim ees at expopackmexico.com.mx.
insured by UnitedHealthcare. In a credit for every gasoline gallon • The National Association
states where these plans are avail- equivalent of propane purchased, of Manufacturers and Business
able, businesses with two to 99 or about 37 cents per gallon. The Roundtable are joining forces to
MODERN cover story
Perhaps more important than inven- financial impact is relatively contained. 6. Term. For most disruptions, the
tory and planning is the lack of expe- Events such as Pearl Harbor and 9/11 term is limited—or is at least quan-
rience: Experts refer back to the 1918 saw a comparably small impact to tifiable. For example, most disasters
Spanish Flu outbreak for guidance, yet the stock market. The closest thing see short-term demand for rescues or
no public health experts have personal might be the global Financial Crisis in emergency services immediately after
experience with this type of global pan- 2007/2008. That crisis had a compar- an event. However, the term for Covid-
demic. The historical contrast between atively limited supply chain impact. If 19 is relatively unknown. We have seen
Philadelphia and St. Louis is telling, anything, there was more supply and a significant spike in the demand for
as the former went ahead with a large, less demand, yet there were no major, hospital beds and ventilators, and social
public parade after which thousands of sustained disruptions to production or distancing is working in some areas to
additional individuals became infected transportation networks. keep the number of infections below
with influenza; St. Louis experienced far In contrast, we have seen global stock the system capacity. While most large
fewer cases and deaths after implement- markets crash and central banks and disruptions have a defined short- or
ing quarantine procedures. governments undertake unprecedented medium-term that can be fairly accu-
Of course, it’s a good thing that we do actions to support the economy. The rea- rately predicted, the term for a global
not regularly have pandemic events, yet son for this is that the Covid-19 demand pandemic is long and uncertain.
that makes these unprecedented times shock is leading to a financial disruption. 7. Human impact and behavior.
for firms, world leaders and individuals If this continues, we will continue to see For the majority of disruptions, the
who are learning in real time the best small businesses cut employees or close, human impact is relatively limited.
steps to take. and many firms will have difficulty rais- Naturally, immediate and consequen-
5. Financial system. Most often, ing capital or repaying loans—preserving tial injuries follow a natural disaster.
when there is major disruption, the cash will be crucial. But, these are limited by location
strengthen the business commu- data will capture existing supplies shields, protective goggles, and
nity’s response to the critical sup- as well as where new manufacturing cleaning and disinfecting supplies. If
plies shortage facing the medical capacity can be tapped to address you are able to donate any of these
community due to Covid-19. The shortages nationwide. items, visit the ALAN donation form at
partnership brings together the full • MHI is coordinating with the alanaid.org/offerinkind.
strength of the U.S. business and American Logistics Aid Network • Tompkins International, a
manufacturing communities to help (ALAN) on supply chain continuity leading supply chain consulting and
those on the front lines of the pan- and critical healthcare resources in solutions firm, has launched a digital
demic. NAM president and CEO Jay response to the pandemic. ALAN is hub of resources to help retailers con-
Timmons and Business Roundtable working with multiple government and tinue to deliver on customer demands
president and CEO Joshua Bolten private sector organizations includ- during these uncertain times. Tomp-
will serve as co-chairs. ing Healthcare Ready to strengthen kins International’s Covid-19 Re-
The NAM and Business Round- healthcare supply chains through sources hub on the company’s web-
table will help consolidate efforts collaboration with public health and site includes educational and thought
across industry sectors in the United private sectors. Currently, there is a leadership content from industry
States and report the data to the dire shortage of personal protective veteran and Tompkins International
federal government. The NAM and equipment and cleaning and disin- chairman and CEO Jim Tompkins
Business Roundtable are encourag- fecting supplies. They are asking any and other company executives. The
ing their members to share informa- member who has these supplies on content focuses on the impacts of
tion on medical supplies and equip- hand to donate them to Healthcare Covid-19, successful supply chain re-
ment, including personal protective Ready or your local hospital if you invention strategies and other related
equipment and test kits, through are able: protective face masks, N95 topics to help businesses flourish in
a co-developed online survey. The respirators, protective gloves, face an increasingly digital world.
MODERN cover story
and are somewhat understandable: Other impacts What to do

Natural disasters can be terrifying, There can more Covid-19 effects. Supply chain leaders should prepare
but fear largely subsides when they For example, many pharmaceuti- for additional disruptions in supply and
are over. In contrast, Covid-19 has cals and machine parts are made in transportation. If you are a business
many unknowns. Most of us are not Switzerland, and these are regularly chain leader, what are some things you
infected, but it is still very natural shipped worldwide in the cargo could do right now? There are some
to be concerned for family mem- space of commercial airliners. If the strong resources on supply chain risk
bers, friends, co-workers and heroic global air network is disrupted over management, but most resources focus
first-responders. the long-term, this could lead to on developing a resilient supply chain
We do not know how long this will shortages or other impacts. and have less to do with facing an imme-
last, nor what the consequences will In addition, firms and govern- diate crisis.
be. I doubt that many of us would ments are likely to reconsider their As I told my students, these are
prefer to live through a major tor- supply chains to reduce systemic unprecedented times, yet we will get
nado over practicing social distanc- risk. It will be considerable work to through these by working together and
ing, yet we should not discount the re-design supply chains to improve with flexibility. This is unlikely to be the
impact on behavior. That is perhaps resiliency. Much of the global phar- last supply chain disruption, though it is
one reason for increased demand for maceutical industry relies on materi- likely to be one of the most memorable.
toilet paper: People feel the need als made in China, and many indus- Each of us should listen to public health
to do something to prepare, even if tries (like automotive) have complex authorities and do what we can keeping
the underlying consumption of toilet supply chains. All of these relation- in mind the unique circumstances.
paper remains constant. ships will need to be re-examined. Beyond that, consider three additional
VALUE CAPABILITIES:
System Analysis & Design
Engineering, Controls & Software
Installation, Post-Sales Support
INDUSTRIES:
Ecommerce
Fulfillment
Parcel
Food & Beverage
Warehouse & Distribution
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MODERN cover story
steps: First and foremost, take care of able for key activities, and update said, but they will likely to remember
your people, including employees and emergency contact lists so these how they felt. Act accordingly.
customers. Employees will likely need to backup employees can communicate
—Brent Moritz, Ph.D., is an associate pro-
be reassured about what is happening at with others. Finally, months or years
fessor of supply chain management at the
your firm, so maintain effective commu- from now, employees and customers Smeal College Business, Penn State Univer-
nication. If anything, over-communicate, are unlikely to remember what you sity. He can be reached at [email protected].
especially if you have significant changes
to regular operations. Provide opportu-
nities for employees to talk with you or
Ready to Go Above & Beyond

their manager. Support your custom-
the Call of Duty

er-facing employees and logistics person-
nel who must keep working when others
are in quarantine. Thombert DYALON® “B” tires are known for their
Second, be flexible and encourage soft ride, toughness, and load capacity.
flexibility. Inevitable disruptions will sur-
Are you ready to lower your operating costs?
face as schools remain closed, and more
individuals contract or care for those
with Covid-19. Letting people know they
should remain home if they feel ill or are
in contact with someone who has the
virus is key.
Third, this is a good time to review
and update emergency plans and con-
tact information. Make sure several
layers of backup employees are avail-
Resources
Some recommended additional resources Why Choose DYALON “B” ?
include the following:
• Good load capacity
• “Understanding supply chain resilience.”
Supply Chain Management Review, Jan/ • Resistance to chunking and tearing
Feb 2014. • Soft ride
• “Managing Risk to Avoid Supply Chain
Breakdown.” MIT Sloan Management
• Excellent traction
Review, Fall 2004. • Longer life equals lower operating costs
• “The resilient enterprise: Overcoming
vulnerability for competitive advantage.” Always Request Thombert®
MIT Press Books.
• “Trial by Fire: A Blaze in Albuquerque Sets
Off Major Crisis for Cell-Phone Giants.”
The Wall Street Journal; New York, N.Y.;
Jan. 29, 2001.
• “Retooling US Supply Chains to Address
Weaknesses Exposed by new Corona-
virus.” Washington Center for Equitable
Growth. equitablegrowth.org/retool-u-s-
supply-chains-to-address-weaknesses-
exposed-by-new-coronavirus/ retrieved - 5 YEARS IN A ROW -
March 16, 2020.
Material Handling _island 4.5x 7.5 no bleed.indd 2 2/5/20 8:54 PM
MODERN special report
Top 20 system
suppliers
Although the coming year promises to paint a different picture,
the industry continued to build upon record growth in 2019.
M
odern’s 23rd-annual Top 20 Systems Suppliers Coming out of this pandemic, we expect com-
list illustrates an industry at the top of its game, panies to rebound and possibly spend more
clearing previous records with ease. When we to automate their operations. This optimistic
revisit the list next year, the impacts of the outlook depends on the health of companies
Covid-19 pandemic will likely be evident. emerging from the pandemic and the amount
However, since the crisis has made the sup- of capital spend available for projects.”
ply chain’s critical importance abundantly clear,
these companies have every chance to continue The Top 10
to perform well. The art and science of man- Daifuku is still No. 1 on the list, reporting more
aging disruption have driven the last decade of than $4 billion in revenues for 2019. Although
BY JOSH BOND, innovation, and the industry must now lean into the figure is slightly less than the previous year,
SENIOR EDITOR
the biggest disruption in generations. it follows double-digit gains contributing to
Before Covid-19, the materials handling three-year growth of 37%.
industry was healthy, according to Norm Saenz, “While Daifuku is experiencing an increase
managing director at consulting firm St. Onge, in projects from the e-commerce sector and
who notes that the Top 20 companies remained an increase in sales in line with the larg-
largely in the same order and many showed er-scale systems being requested, at the same
gains. Following two years of double-digit time sales also reflected the impact from the
growth, the list’s combined revenues grew 7.3% downturn in investments in the semiconduc-
in 2019 to more than $23 billion. tor and flat-panel sectors,” says Stuart Oliph-
“This is what we were seeing over the last ant from Daifuku’s corporate communications
year, as many companies looked to automation department.
to deal with surging e-commerce volumes, In 2019, Daifuku acquired Vega Conveyors
increasing SKUs and a shortage in the labor & Automation Private Ltd. Founded in 1999
force,” Saenz says. “Although many projects and employing 73 people as of March 2019, the
will continue through the crisis, others were company provides conveyor and other materi-
and might remain in a wait-and-see mode. als handling equipment design, manufacture,
Top 20 worldwide materials handling system suppliers
Worldwide Worldwide
2019 2018 2018 revenue 2019 revenue Percent change Three-year
Rank Rank Company Website (million USD) (million USD) 2018 -2019 change Headquarters
1 1 Daifuku Co., Ltd. daifuku.com 4167 4016 -3.6% 37% Osaka, Japan
Schaefer Holding
2 2 ssi-schaefer.us 3217 3217* 0% 22% Neunkirchen, Germany
International GmbH
Dematic (KION
3 3 dematic.com 2350 2662 13.3% 32% Atlanta, Ga.
Group)
Honeywell
4 4 intelligrated.com 1700 1800 5.9% 112% Mason, Ohio
Intelligrated
Murata Machinery,
4 6 muratec-usa.com 1342 1800 34.1% 43% Kyoto, Japan
Ltd.
Vanderlande
Veghel, The
6 5 Industries B.V. vanderlande.com 1538 1700 10.5% 38%
Netherlands
(TALG**)
7 7 Knapp AG knapp.com 1050 1370 30.5% 113% Hart bei Graz, Austria
Beumer Group beumergroup.

8 8 1000 1100 10.0% 29% Beckum, Germany
GmbH com
Material Handling
9 10 mhsglobal.com 860 1000 16.3% N/A Mount Washington, Ky.
Systems (MHS)
10 9 Swisslog AG swisslog.com 923 922 -0.1% 43% Buchs, Switzerland
TGW Logistics
11 11 tgw-group.com 817 850 4.0% 50% Wels, Austria
Group GmbH
Witron Logistik +
12 12 witron.com 637 673 5.7% 49% Parkstein, Germany
Informatik, GmbH
13 13 Kardex AG kardex.com 478 532 11.3% 34% Zurich, Switzerland
Bastian Solutions bastiansolutions.

14 14 316 353 11.7% 63% Indianapolis, Ind.
(TALG**) com
15 15 Elettric 80 elettric80.com 272 272 0% 81% Viano, RE, Italy
System Logistics systemlogistics.

16 16 225 261 16.0% 102% Fiorano, MO, Italy
SpA com
17 17 DMW&H dmwandh.com 214 214 0% 24% Fairfield, N.J.
18 20 Stöcklin Logistik AG stoecklin.com 148 163 10.1% N/A Aesch, Switzerland
19 18 viastore systems Inc. us.viastore.com 197 157 -20.3% 12% Stuttgart, Germany
Lödige Industries
20 19 lodige.com 188 146 -22.3% N/A Scherfede, Germany
GmbH
Totals $21,639 $23,208 7.3%

Source: Modern Materials Handling
*2019 revenues were not available by press time.
** A Toyota Advanced Logistics Group company.
installation and after-sales service. Dai-

fuku also acquired Netherlands-based Making the list
Scarabee Aviation Group B.V. and Aus-
tralia-based Intersystems (Asia Pacific) T o qualify for Modern’s Top 20 list, companies must be suppliers of materials
handling systems, not just equipment providers. In addition to manufacturing
at least two major handling system components, a company must also employ
Pty Limited. Revenue from the acquired
full-time staff that designs, installs and integrates materials handling systems.
companies are not included in the cur-
These systems include at least two of the following: transportation devices,
rent fiscal year results. storage and staging equipment, picking units, sortation systems, information
Schaefer Systems International management systems, data capture technologies and other types of handling
(SSI) was unable to report revenues equipment.
by press time, so its 2018 figures have To be considered worldwide suppliers, companies must have a presence in
been carried over to comfortably retain North America and must also be able to report materials handling revenues to
second place. Modern. (Lockheed Martin, for example, is a systems supplier with a North Amer-
ican presence, but isn’t included in our Top 20 list because they can’t single out
Following its acquisition by forklift
the revenue that comes from materials handling contracts.)
and logistics leader KION Group in late
2016, Dematic is now a supply chain
solutions operating unit of KION. The insights into a sortation system’s overall the then 16th place Bastian Solutions,
unit includes Dematic as well as Ege- performance. Vanderlande became the second busi-
min, an automated industrial vehicle In the fourth quarter of 2019, the ness to join TICO’s new business divi-
specialist that previously placed 18th company formed Honeywell Robotics, an sion called Toyota Advanced Logistics
on this list and was acquired by KION advanced technology center focused on Group (TALG), which manages North
in 2015. developing artificial intelligence, machine American activities in the area of logis-
Dematic again placed third with learning, computer vision and advanced tics solutions.
$2.7 billion in revenues. Growing more robotics for use across supply chains. Knapp reported $1.37 billion in 2019
than 13% year over year, the company “Increasing consumer expectations for revenues, an increase of more than
has achieved a three-year revenue fast, accurate delivery are driving an evo- 30% and enough to maintain a firm
increase of 32%. lution in the way retail distribution cen- hold on seventh place. It’s one of three
On last year’s list, Honeywell Intel- ter operations are conducted,” Krynauw companies on the list to have doubled
ligrated climbed from sixth to fourth, says. “To stay competitive, DCs must revenues in three years. Kevin Reader,
where it sits with an estimated $1.8 adapt to the seemingly unlimited pace of director of business development and
billion in revenues—more than double change in e-commerce.” marketing for Knapp, says the company
from three years ago. The number is Although it gained only one spot as has experienced significant expansion
based on the warehouse automation a result, Murata (Muratec USA) posted in new business bookings from market
division of Honeywell’s Safety and Pro- the highest annual growth rate, increas- leaders in healthcare, retail, grocery and
ductivity Solutions business. ing revenues by 34% to tie Honeywell e-commerce sectors. He also empha-
Pieter Krynauw, president of Hon- Intelligrated in the fourth spot with sized development of solutions for the
eywell Intelligrated, says the company $1.8 billion. A spokesperson says the digital supply chain that leverage Big
continues to see strong growth in the Japanese market was extremely active Data, predictive modeling, analytics and
warehouse automation sector. In 2019, this year in the logistics automation artificial intelligence.
the company released an autonomous market and especially with respect to a “Knapp continues to invest 7% annu-
robotic unloader that uses artificial large number of manufacturing automa- ally in R&D, and has also committed to
intelligence to unload. It also released tion projects. major projects across virtually all Knapp
its Connected Assets offering, which In sixth place, Vanderlande’s rev- subsidiaries in the areas of personnel,
builds on its connected distribution enues climbed 10.5% to $1.7 billion. production capacity and technology to
center infrastructure. The solution Shortly before publication of the 2017 meet the growing demand for our sup-
accumulates data on equipment and Top 20 list, Toyota Industries Corpo- ply chain solutions,” Reader says. “This
system health provide operators with ration (TICO) acquired the company. growth includes the recently completed
the real time status and historical Following TICO’s 2017 acquisition of expansion of U.S. facilities in Kennesaw
Ga., driven by a three-year 404% growth in the North
American market.”
Holding eighth place in the list’s competitive mid-field,
Beumer improved upon 2018 revenues by growing 10% to
finish with $1.1 billion. “2019 was another year of positive
growth for Beumer Group, with record order intake and rev-
enue,” says Uwe Kinski, CFO of Beumer Corp.
Rising to No. 9, Material Handling Systems (MHS)
debuted on last year’s list at No. 10. It has since grown rev-
enues by more than 16% to cross the $1 billion mark. MHS
business units include Parcel North America, Lifecycle
Performance Services and research and development offices
in Mount Washington, Ky., as well as distribution and ful-
fillment offices in Atlanta.
MHS acquired control system integrator Atronix in
November 2017, global integrator VanRiet in May 2018,
materials handling equipment integrator A2i in July, and
sortation specialist OCM in August 2018. In early 2020,
the company launched MHS Insights, a condition-based
maintenance solution that monitors assets through IoT sen-
sors and system data.
“By not leveraging data, warehouses and distribution
centers miss significant opportunities to reduce downtime
and make their service operations more effective and effi-
cient,” says John Sorensen, senior vice president of Life-
cycle Performance Services for MHS. “MHS Insights is
designed to address this deficiency by combining data and
analytics to provide precise, timely maintenance insights.”
Rounding out the Top 10, Swisslog’s revenues stayed level
at $922 million. Christian Baur, CEO of Swisslog, says the
company has organized around two business units. The first
is an e-commerce/retail business unit implementing advanced
goods-to-person technologies like Swisslog’s CarryPick mobile
robotic solution, Cyclone Carrier shuttle system, AutoStore
and ItemPiQ single item robotic picking solution, which can
be integrated with those goods-to-person systems.
Swisslog’s second business unit focuses on consumer
goods, particularly pallet handling in food and beverage
applications with its Vectura pallet stacker cranes, Power-
Store pallet shuttle systems, and ACPaQ mixed case pallet-
izing robots. Although roughly 30% of the Swisslog Group’s
revenue is generated by Swisslog Healthcare, Baur says that
business has recently become a separate brand and entity.
“Swisslog’s growth can be attributed to a clearly defined
strategy, which is to shape the future of intralogistics with
flexible, robotic and data-driven automation and software
that delivers exceptional customer value,” Baur adds.
mmh.com
Notable performances which Norman Leonhardt, director of Kardex AG is one of 10 companies on

Companies ranked 11 through 17 have business development, attributed to the list to report double-digit gains, up
retained their positions this year, begin- many new projects for existing clients 11.3% to $532 million in 2019 revenues
ning with TGW. The company’s revenues as well as new customers. The com- and placing them at No. 13.
improved 4% to $850 million. Chad Zoll- pany signed its first contract in Sweden Bastian Solutions’ revenues grew
man, chief sales officer in North Amer- for a highly automated warehouse and nearly 12% to $353 million, contrib-
ica, attributed the growth to demand for announced its first order picking machin- uting to a three-year revenue increase
fulfillment solutions among global cus- ery project in the United Kingdom. of more than 60% and earning it 14th
tomers in fashion and apparel, grocery, In 2019, Witron announced a major place. In 2019, Bastian Solutions
industrial and consumer goods. expansion of its headquarters in Park- opened its new Advanced Manufactur-
“Our standardized solutions enable stein, Germany, and purchased addi- ing Center in Westfield, Ind.
a faster implementation timeline and tional property in the Chicago suburbs Greg Conner, vice president of global
a predictable asset management plan,” to expand its North America headquar- sales, says the company continues to
Zollman says. “For our customers, out- ters. Also in 2019, Witron opened its experience unprecedented growth, which
side of ROI goals associated with labor first office in Australia and is opening a he attributed to a strategic focus in key
and quality, standardized solutions allow new office in the Montreal area due to areas including omni-channel solutions
for greater reporting transparency and strong growth in Canada. and the increased number of integrations
a higher absorption of lessons learned “It’s one more reason to celebrate in of goods-to-person systems. Advancement
across geographies.” 2020 as we mark our 25-year anniver- of the company’s Exacta warehouse exe-
Witron, finishing 12th with $673 mil- sary of doing business in North Amer- cution software platform has contributed
lion, had another year of strong growth, ica,” Leonhardt adds. to quicker implementations, he adds.
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“Through strategic partnerships with Colletti, president and CEO, says 2019 growth might be difficult. “In 2019 we
new and existing clients, Bastian Solu- was a successful year across all business missed some international targets, and
tions was able to successfully integrate a segments. “We’re now able to carry a we pulled out of one international mar-
record number of materials handling sys- record sales backlog into 2020,” Colletti ket completely,” she says. “On a positive
tems in 2019 as well as enter several new says. “We are excited by our progress and note, we recently landed the largest proj-
industries,” Conner says. “Additionally, are committed to continued infrastructure ect in the company’s history.”
our automatic guided vehicle division investments to further support our growth.” The 130-year old company has 50
experienced double-digit growth in 2019 In its third year on our list, No. 18 years of experience in automated storage
and is quickly becoming a strategic focus Stöcklin achieved double-digit revenue and retrieval technology, and Day says she
of our company.” growth with $163 million. According to fully expects to see strong growth going
Elettric80, No. 15, reported 2019 rev- Danilo Potocnik, head of sales for the forward as the company’s markets remain
enues identical to those of 2018, at $272 U.S. and Canada, growth was driven by strong and viastore’s solution set expands.
million. However, a representative notes an increase in projects in the pharma- Rounding out the Top 20 is Lödige
that sales in Euro increased, but were ceutical industry. Industries, a family-owned company that
offset by the decrease of the Euro/USD Coming in at No. 19 with $673 mil- turned 70 last year and employs 1,000
exchange rate. lion is viastore. This represents a decline worldwide with $145.5 million. “Though
Italy-based System Logistics posted from 2018, when the company posted a turn-over is lower than in 2018, we have
a 16% revenue bump for a total of $261 38% spike in revenue. At the time, Lisa closed on some key projects, which will
million and a spot at No. 16. Day, marketing and business develop- only show their impact on income over
DMW&H reported level revenues at ment manager for viastore, noted that the next few years,” says Philippe De
$214 million, landing at No. 17, but Joe maintaining such a level of percentage Backer, CEO of Lödige Industries.
MODERN information management
ERP
expands alongside
WMS
ERP solutions serve as the transactional foundation for many
companies. For distribution organizations, a key ERP concern
continues to be whether a system’s WMS functions are sufficient.
More ERP vendors are expanding into advanced WMS functions
as they evolve to meet complex warehouse fulfillment needs.
BY ROBERTO MICHEL,
EDITOR AT LARGE A n enterprise resource planning (ERP) solution brings together the key
transactional flows for a company—customer orders, production plans
and management, distribution requirements, and financial manage-
ment. But, ERP doesn’t do everything.
Though ERP’s value as a transactional backbone is well established, best-of-
breed solutions continue to be a good fit for some functions. Warehouse manage-
ment system (WMS) software needs are one of them, at least for some companies.
Even though many ERP vendors have developed advanced WMS as part of
their suites or have acquired WMS vendors, best-of-breed WMS vendors have
hardly stood still, coming out with advanced functionality for labor manage-
ment, analytics, retail store operations, and improved capabilities in the ware-
house execution system (WES) software layer that sits between WMS and
and founder of supply chain consulting firm MWPVL
International. Vendors have been forced to come up
with stronger functionality in areas, like order releasing,
to make best use of automation, labor management and
the ability to quickly rebalance resources in a distribu-
tion center.
“If you are a manufacturer handing mostly full pal-
lets, and there is little complexity to the operation, you
can probably rely on WMS from an ERP vendor to run
your warehouse,” says Wulfraat. “But as the size and
complexity of a DC increases, there is a need for more
labor optimization and far more flexibility to manage
operations. And, with e-commerce causing operations
to be drowning in one-line orders, many DCs are uti-
lizing more automation. Once you start marching down
that path, the WMS functionality provided by some
ERP vendors may lack the needed capabilities.”
Advanced needs
For potential users with growing warehouse complex-
ities, the key is to closely examine whether the WMS
module in an ERP solution offers advanced functional-
ity. If not, they need an ERP vendor who can integrate
effectively, using mechanisms such as application pro-
gramming interfaces (APIs).
ERP vendors point out that for many DCs, their WMS
modules are a good fit. What’s more, explains Dan Kamin-
stein, senior product manager with ERP vendor Epicor
Software, WMS from your ERP vendor takes integration
worries off the table. “Our WMS software code is part of
our [ERP] code rather than a separate application,” he
says. “We share the same database, so it’s all directly inte-
grated. There is no chance of data getting out of sync.”
Typically, an ERP system will hold master data on
automated materials handling systems. products, orders and customers, while a WMS will gov-
The upshot is that despite all ERP can do today, ern warehouse-level fulfillment processes and consump-
ERP providers still need a strong strategy for addressing tion of goods at the warehouse level. The two domains
the supply chain execution needs of companies. They need to stay in sync so inventory levels remain accurate
either have to build in advanced functions that didn’t and replenishment to the DCs works smoothly.
used to be part of ERP or be very flexible in their inte- ERP vendors with WMS functionality appeal to
gration. While the biggest ERP vendors have broad and organizations that don’t want to worry about integra-
deep supply chain capabilities including WMS, users tion or separate information technology (IT) infra-
can’t assume the average solution will cover all bases. structures, but the caveat is that WMS modules from
The increasing impact of e-commerce on order cycle ERP vendors need sufficient capabilities. Kaminstein
times and labor-intensive each picking has added com- points out that for Epicor, which takes an industry-spe-
plexity to WMS needs, notes Marc Wulfraat, president cific approach to ERP including distributors with its
also want to make the system easy to use on Android

devices, and make inventory control as efficient as pos-
sible by minimizing the number of scans.”
Some users, adds Johnson, may prefer a best-of-breed
approach to WMS, so Acumatica leverages a set of
tested APIs and maintains WMS vendor partnerships.
For example, Shoebacca, an online retailer of footwear
and apparel, uses Acumatica ERP integrated with WMS
functionality from Acumatica partner Fusion Software.
Acumatica’s APIs, says Johnson, support representa-
For Shoebacca, which sells shoes and apparel online, a WMS tional state transfer (REST) technology, which works
from a partner of its ERP vendor Acumatica meets its needs for well for Web-based systems integration.
enterprise-level processes and warehouse fulfillment.
Links to automation
Prophet 21 system, the WMS is an advanced solution. One ongoing shift in the WMS market is the increasing
Most WMS solutions—including modules from need for WMS vendors to have some WES-level capabil-
ERP vendors—cover fundamentals such as mobile ities to permit the WMS to work better with warehouse
workflows for key processes like receiving, put away automation. Some of the leading best-of-breed WMS
and picking, while supporting radio frequency (RF)- vendors have put a focus on WES in recent years and are
based task execution and data collection. But addi- generally further ahead with WES capabilities than most
tional functionality may be needed beyond generating ERP vendors. However, some ERP vendors have capa-
electronic pick lists and being able to execute them bilities in their WMS solutions that allow the WMS to
with RF-based picking. interoperate with automation.
For example, says Kaminstein, the Prophet 21 WMS Acumatica has a concept of a “virtual warehouse”
has a “workbench” function that allows managers or the within its WMS that will permit an automated system,
system itself to adjust the sequence of picking activi- like a mobile robotic solution, to manage in the opera-
ties based on multiple factors to reduce picker travel tion as a virtual warehouse. The Acumatica WMS coor-
time and allow for greater productivity. The WMS also dinates the upstream and downstream activities and
permits efficient scans of full pallets to track goods the overall flow of work, while the robotic system man-
without having to scan each individual item, as well as ages the inventory and work in the virtual warehouse
a single scan in receiving to inbound goods sent under zone, he explains. “We’ll be able to help our customers
an advanced ship notification (ASN). take advantage of these new technologies like robotics,”
Doug Johnson, vice president of product manage- Johnson says.
ment for ERP vendor Acumatica, agrees that ERP ven- With Epicor’s Prophet 21 WMS, APIs communicate
dors are able to offer more than basic WMS. He points and sync needed processes with automated systems,
to the ability of Acumatica’s Cloud-based WMS to whether that be robotics, an automated storage and
come up with efficient order waves for picking and run retrieval system (AS/RS), or other forms of automation.
well on Android devices. Flexibility in defining units of In fact, says Kaminstein, the WMS has been inte-
measure supports the need to minimize scanning. The grated with carousel-type AS/RS, and at one site for Epi-
overall aim, says Johnson, is to enhance worker produc- cor customer Radwell International, with an AutoStore
tivity while still ensuring tight control over order accu- automated storage and picking system from Swisslog.
racy or requirements in areas like lot and serial control. Radwell, a supplier and distributor of industrial auto-
“As DC operations scale in terms of volume and mation products, uses the AutoStore system for rapid,
picking complexity, you want to leverage some logic for robotic-assisted picking, with the Epicor WMS dispatch-
efficient waves and order picking,” Johnson says. “You ing the order requirements to the system.
SAP, one of the largest ERP vendors, has offered ERP systems, like Epicor, and its own ERP package for
warehouse control system (WCS) capability as part of automotive industry suppliers.
its Extended Warehouse Management (eWM) WMS The challenge for ERP vendors and end users is that
solution for years. This function, which SAP calls material it’s time intensive to tweak EDI functionality to keep
flow system (MFS), allows eWM to govern the flow of up with changing requirements, says Czernel. Some
work through automated systems. changes might be with labels related to shipments
According to Richard Kirker, solution owner, ware- involving EDI transactions, like moving to a 2D bar code
house management at SAP, companies with highly or QR code. Other changes are at the business rule level,
automated warehouses will often use like a change in how an OEM defines
MFS to coordinate WMS workflows
with automation in real time. This isn’t
Companies something within a purchase order, or a
forecast communication.
just a communication of requirements,
mentioned in Software vendors that specialize in
but a real-time WCS capability that can this article EDI solutions add value by constantly
trigger diverts and other automation • Acumatica incorporating new changes into the EDI
movements, adds Kirker. software, which essentially takes that
• AIM Computer
Though SAP users can now deploy work off the table for ERP developers,
Solutions
eWM as an “embedded” function of and in turn, for end users, explains Czer-
SAP’s Cloud-based, S/4HANA ERP • Epicor Software nel, especially within the automotive
solution, it can also be deployed sepa- • MWPVL sector. “The work we do relieves the ERP
rately, under what Kirker calls a “decen- International vendors from the obligation of staying on
tralized” model. Some large eWM sites top of changing requirements, making the
• SAP
with extensive automation tend to opt changes, and ensuring they get tested in
for the decentralized option because time for the effective dates,” he says. “It’s
it gives the local site complete control over perfor- not like you develop a set of EDI functionality and it’s
mance, while many other users find the embedded good for 10 years. It’s only good until an OEM like Gen-
option appealing because it streamlines costs. “With eral Motors, or Honda or whomever, makes a change.”
the embedded option, the main benefit is that it sim- Another EDI complexity is that different OEMs
plifies the IT landscape,” Kirker says. might define something like forecast dates differently,
adds Czernel. One might base forecast dates around
Specialized needs the ship date from its suppliers, while another may
Even an ERP package with advanced WMS might base it on the receive date at the assembly plant.
benefit from a third-party application to handle cer- EDI software should reconcile or “normalize” such
tain other functions. Examples of this could include differences so when people in operations work with
small parcel shipping software, yard management EDI, they don’t have to weed out the differences. “To
solutions, e-commerce shopping cart solutions, or service EDI in our market, you can’t treat it as a side-
electronic data interchange (EDI) solutions. line,” he says. “It’s very important we normalize the way
The challenge with an effective EDI solution, says EDI works so that the end user organizations are able
Jerry Czernel, a vice president at AIM Computer Solu- to correctly pick up the demand signal.”
tions, is that major original equipment manufacturers Still, for enterprise-level transactions, and key opera-
(OEM) or other large enterprises that can set EDI tional applications like WMS, the appeal of ERP with
mandates for their supplier base will sometimes change extended functions is compelling. As Epicor’s Kamin-
EDI business rules or content, like labeling related to stein sums up: “Many of our customers like the idea
EDI transactions. This is especially true in the auto- that it’s a single application. They aren’t worrying about
motive sector, says Czernel, which AIM targets with integration to maintain or manage in any way. It
an EDI and labeling solution that integrates with large reduces your risk.”
MODERN lift truck series
RUCK SER
FTT IE
I
S
L
•
ERIES •
LIFT TRUCK
L
KS
UC
PART TWO
SE
RIE TR
TECHNOLOGY
S • LIFT
Lift truck innovation:

In their own words
Modern talked to five leaders in the lift truck
industry to find out what they expect the
future will bring to the market.
D
BY GARY FORGER, CONTRIBUTING EDITOR
o a keyword search for the future of lift trucks, and you’ll come up with
these—automation, semi-automated, lithium-ion batteries, robotics
and sealed lead acid batteries, to name five. And, if your initial reac-
tion is that now is the time to look into
these and related advanced technolo-
gies, you would be right on target.
Lift truck fleets and their power
sources are going to look quite different
five years from now. That shift matters
because it will mean to you higher
operating efficiencies, a better match of
trucks to the work at hand and a lower
Lift truck fleets and their power sources are going to look total cost of ownership. Here are what
quite different five years from now.
five leaders in the field say is coming
your way in the very near future.
Dual mode lift trucks operate either with
an operator or completely autonomously.
JIM GASKELL of maximum flex- that require specialized technicians to

Director of global technology ibility. It creates a make any deviations to stopped vehi-
business development, whole new oper- cles due to dynamic conditions. Now,
Crown Equipment ating arena in the the typical warehouse worker with a
The traditional model is lift trucks that warehouse. standard operator license can be relied
operators used to do work. Innovations Take a simple on to move vehicles, change their
included product design and features tow tractor. With routes and destinations, and collabo-
intended to help operators be more effec- dual mode auto- rate with other equipment. It’s a real
tive in doing that work. Now, the focus is mation, it can game-changer, which is required for
on making the operator more productive travel entirely by the full adoption of autonomous vehi-
by providing entire systems that do the itself, making long cles in warehouse environments.
work for you. Autonomous lift trucks are runs and returns. How the truck operates is a matter
the central innovation here. It follows either a of your preference given circumstances.
Critically important is that we aren’t programmed path or uses 2D LIDAR guid- But in every system, the three key oper-
talking about a single mode of operation. ance (also known as laser natural features) ational factors are speed, path flexibility
For warehouse managers, automation has that sees the environment and adjusts its and safety. Combine those with nearly
always been an all-or-nothing proposition. path as necessary. Or, if preferred in cer- 100% reliability of all automated com-
But that’s not the case anymore. Dual tain circumstances, an operator can man- ponents, and you’ve got a system well
mode lift trucks operate either with an ually operate that tow tractor and its train suited to your specific operations and
operator or completely autonomously. between pickup and drop off locations. It’s scalable to fit changing requirements
This allows a phase-in of automation a true dual mode truck. without significant investments in cre-
and/or the option to operate in a mixed These are unlike traditional non- ating or reconfiguring supporting infra-
environment that comes with the benefit dual mode automatic guided vehicles structure.
There’s also the matter of account-

ability. Too many automation projects
get mired down in unproven technology
and suppliers unable to deliver what
was promised. And, that’s what happens
before the system is ever up and running.
Fortunately, that’s not the case with
automated lift trucks. That might be the
greatest innovation of all.
HAROLD VANASSE
Senior director of marketing,
motive power, Americas, Enersys
This is a time of great flux for lift truck
power sources. While traditional flooded
lead acid batteries now account for
roughly 80% of
the market, that is
about to change. It’s critical to match power sources to operational requirements from run time
In five years, they to maintenance.
will account for a
minority of batter- ership (TCO). The winner five years BRET AKER
ies sold. The dom- from now will be the technology with Vice president software solutions,
inant types of bat- the lowest TCO. GNB Industrial Power, a division
teries will become The wild card in battery innova- of Exide Technologies
lithium ion and tion, believe it or not, will be electric We are living in the era of the battery.
sealed lead acid, vehicles, whether it’s a Tesla or other With significant advances in lead and
also known as thin brand. Lithium-ion batteries for lift lithium technologies, more options for
plate pure lead. trucks will ride on the coattails of what electric forklift
Each of these two technologies account happens there. If the advances in car fleets are available
for less than 15% of battery sales right batteries is sufficient, it could make than ever before.
now. Meanwhile, hydrogen fuel cells will a stronger case for lithium ion to be But making sense
grow from less than 1% today to maybe the dominant technology, especially if of this new world
5% in five years. TCO drops significantly. Either way, can be diffi-
This transition is a story of simplicity the convenience aspects of thin plate cult. Advanced
and ease. That’s what’s driving innova- pure lead or lithium batteries will be charging strategies
tion. People are eager to minimize the what drives the change. combined with
time and effort needed to charge and It’s worth noting that all battery new battery offer-
maintain batteries. If they can get rid of technologies can be fast charged today. ings have made it
the charging room altogether, they will. Interest here has really accelerated nearly impossible
If they can do without the requirement in the past couple of years. That will to consider all of
for an eight-hour cooling cycle, they continue as users look for ways to keep these choices, and yet it’s critical to do
will. If they can do without having to trucks moving to meet ever-increasing just that. End users and suppliers need
own a second battery for every one in demand for efficiency. Look for wireless to work together to tailor the power
use, they will. All of those shifts will inductive charging in particular to be in source based on requirements such as
greatly reduce the total cost of own- strong demand, too. run time, energy throughput, lifetime,
maintenance and cost performance. running throughout the highest energy PERRY ARDITO
Here’s an example of how this can usage levels of the day while allocating General manager,
work. As DCs have “gone vertical” adding the least time possible to recharge. But Jungheinrich Warehouse &
more rack levels, reach trucks are chal- it doesn’t stop there. The models also Automation Products Group,
lenged to lift loads higher. To do that, seek to optimize battery use across its North America
they burn energy faster, experiencing lifetime, providing the ideal cost of A very strong
energy spikes that many batteries are not ownership. interest is out
designed to handle. As a result, many It all starts with a power study that there to reduce
are literally killing conventional lead acid provides the data to model battery and labor costs,
batteries prematurely. Fortunately, there charger options, and assign operational improve safety
are two options here—air cooled lead tolerances to these options. Power stud- and enhance pro-
acid or lithium-ion batteries. But how do ies allow us to tailor solutions based on cesses, and that
you know which is a better solution for factors ranging from anticipated growth is driving inno-
your specific application? to potential missed charge time, making vation right now.
That’s where modeling software sure the system has the tolerances built Each of those
comes into the picture. This innova- in to satisfy the long-term needs of end goals is increas-
tive approach does away with guessing users. Ultimately, it’s all about planning ingly achieved
and builds a profile of the suitability of before a dollar is ever spent to ensure by bringing on
potential power sources. The key mod- end users are happy with their motive fully automated and semi-automated lift
eling principle is to keep the vehicle power systems today and in the future. trucks. Meanwhile, lithium-ion batteries
are poised to significantly increase effi-
ciencies, as well also enhance safety and
processes in the world of power sources.
For automation, lasers and an array
of sensors are the backbone of enabling
automatic guided vehicles (AGVs) to
travel safely. And 2D LIDAR navigation
technology is adding an array of intel-
ligence to allow lift trucks to navigate
warehouses and distribution centers
safely and expeditiously. Direct connec-
tions between the AGVs and warehouse
management systems is further enhanc-
ing process improvement.
Automation does not have to be an
on/off switch either. Options in semi-
automated lift trucks and fully auto-
mated ones make the transition from
manual operations easier to incorporate
into a company’s workforce and culture,
typically a phased-in approach over time.
Especially important here is the fact
Robotic lift trucks offer
the flexibility to move that these developments are being driven
loads with and without by end users and suppliers alike. There is
an operator. such strong demand to make predictable
and repeatable tasks an automated rou-
tine. The sweet spot for this innovation they will discover still other reasons to to be done right
is labor tasks that people are actually adopt these new technologies. then. Telematics
better off not having to perform day in also ensure that
and day out. KEVIN PARAMORE the right number
That goes for the handling and Emerging technology of lift truck oper-
charging of flooded lead acid batteries. commercialization manager, ators are available
Lithium-ion batteries do not require Yale Materials Handling and operational
charging rooms or manual handling for Corporation on an as-needed
replacement or recharging. That addresses We see innovation in lift trucks focused basis.
both safety and process efficiencies. on three areas: telematics, robotics and Robotics is a
Better yet, lithium ion requires only motive power. With all three, end users really interesting
two or three hours to recharge, not eight have more options than ever. And just development.
hours as with flooded lead acid batteries. as important, each of those innovation Robotic lift trucks
That not only eliminates the need for centers are focused on making truck offer the flexibility to move loads with
additional batteries for every truck over operation as smart as possible. and without an operator. No other auton-
multiple shifts, but keeps more trucks Telematics collect and share truck omous transport technology—automatic
running more of the time. data, providing not just an operational guided vehicles or autonomous mobile
These are just some of the ways lift baseline, but insights into efficiencies. robots—can do both. That gives robotic
truck innovations are cost effective and This allows companies to put the right lift trucks a huge advantage, depending
employee friendly. As companies eval- equipment out on the floor at the right on circumstances, in the horizontal
uate their options for their business, time to manage the work that needs and vertical movement of loads. They
can also be linked or not to warehouse
management and warehouse execution
systems, providing still greater flexibility
AVAILABLE NOW
than other technologies. It all comes
down to making robotics operation as
smart as is necessary for the application
rather than having to adapt the applica-
tion to the technology.
Motive power is all about finding the
right power source for the application.
The objective is a combination of the
lowest total cost of ownership and ful-
filling the end user’s needs. Lead acid,
hydrogen and lithium ion each have
their strengths. The goal is to match
the technology to the need for speed,
throughput, long runs or what have
The Modern Warehouse you. Never before have there been so
many options to match motive power to
Rugged Docking Solutions for the
Samsung Galaxy Tab Active Pro the lift truck operation.
In the end, innovation has made lift
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1.800.497.7479 rammount.com [email protected] motive power to operational needs.
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MODERN equipment report
Warehouse with a
life-saving mission
In Jacksonville, Coca-Cola Florida had just opened an upgraded high-density
overflow warehouse when it took on a mission never imagined during its
design—supplying beverages for a pandemic. Preparedness and simplicity
are key to its success under dire circumstances.
W
hen the folks at Coca-Cola Beverages Florida bought a warehouse in

Jacksonville last year, they knew what they wanted. They just didn’t
know that they weren’t thinking big enough at the time. They know
better now.
For three years, Coke had been leasing the 108,000-square-foot facility to
store about a half million cases of sparkling drinks and water. The intent, explains
Jason Reed, senior vice president of product supply network, was to convert the
warehouse into an overflow facility for 1.5 million cases of product from a nearby
bottling plant.
But there’s more here than just overflow. “When a hurricane hits, demand, espe-
cially for water, goes up exponentially. And, we have to be ready to meet the need,”
says Reed. “But, hurricanes are one thing. We never anticipated a pandemic.”
More than just overflow

The company’s Jacksonville bottling plant is about a quarter mile away and doesn’t
have sufficient on-site warehouse capacity to match production. That facility, by the
way, annually produces 16 million cases of drinks from Coke and Diet Coke to Coke
Energy and both Dasani and Aha water.
The back half of the new DC, affectionately known as H2, is filled with cases of
water destined for distribution during those hurricanes. In fact, says Reed, the facil-
ity is designated an essential business as a hydration supplier by the Department of
Homeland Security.
But it wasn’t until 60 days ago, however, that H2 started supplying food retailers
and others as people stocked up to stay at home during the Covid-19 crisis.
“Daily shipments increased roughly 25% to about 200,000 cases a day with the pan-
demic,” says Reed. Those shipments, while dominated by cases of water, have included the
full range of Coke products stored in the warehouse.
When Reed was interviewed for this story, Florida had just implemented its stay-at-
home order. At that point, Reed expected those elevated levels would remain for another
two or three weeks before beginning to

normalize as people stopped stockpiling.
Coca-Cola Florida’s success here has
not gone unnoticed. Reed says retailers
have offered accolades for the drink
supplier’s ability to keep their supply
chain up and running. Not every other
supplier was able to do the same, says
Reed. “The inventory in that warehouse
is a valuable asset especially in times of
dire need,” adds Reed.
That win for Coke, he points out,
is not just the result of high shipment
velocity from H2. It was also made pos-
sible by high efficiency on the part of
the company’s transportation and deliv-
ery supply chain. Drive-in rack provides high-density storage of a range of Coke products.
“This facility is a strategic anchor
point for product storage for the state of says Reed. This decision, too, was not lift trucks already at the facility. So, all
Florida. H2 also supports the company’s unique to Jacksonville. rack in the facility is four high.
volume, growth and innovation strate- In fact, the company has used Twin-
gies,” says Reed. lode drive-in rack at several facilities Getting the layout right
What follows is the story behind the over the years. And, Twinlode’s national When it comes to product flow, the
warehouse that Coca-Cola Florida had account manager Mike Williams has warehouse has two schemes.
no idea it was building for a pandemic. been deeply involved with many of In the front half of the facility, there
those installs. are roughly 1 million cases of a broad
Drive-in rack wins the day “Drive-in rack design is best suited to range of drinks, totaling about 150
During the first couple of years that Coke’s high-density storage operations,” SKUs. This product turns at a much
the company used the facility, almost Williams explains. Alternatives include faster pace than the rest of H2, turning
all cases were floor stacked. Only push-back and flow rack. However, both roughly every 10 days.
a small section of racking existed. of those rack designs are not as well The back half is dedicated to cases
To triple the capacity, a lot more suited to the throughput and handling of water staged for natural disasters and
rack was needed since the plan did requirements of the facility, says Williams. is expected to sit there for six months
not include expanding the facility’s “We are most interested in the sim- or longer. That required a split design,
108,000-square-foot footprint. plest, most basic rack at the lowest cost explains Williams.
The decision to use rack and lift per pallet position for high-density stor- The front half has 5,700 pallet posi-
trucks to manage inventory is not age of really heavy pallet loads of drinks,” tions. The front third has two aisles,
unique to Jacksonville, explains Reed. says Reed. Drive-in rack, adds Williams, and there are three aisles in the back
In fact, all of the company’s Florida is one-third the cost per pallet position two thirds. An office area fills out what
warehouses use rack or floor storage. compared to automated solutions. would have been a third aisle of storage
Together, they manage 100 million It’s not uncommon to maximize up front. All aisles are 16 feet wide and
cases a year produced at the company’s storage density in a limited footprint racks are 11 bays deep.
four bottling facilities scattered around by going several storage levels high. The back half has 11,500 pallet
the state. Automation is not part of the However, the Jacksonville facility has a positions. A single, 18-foot wide aisle
mix, yet. More on that later. clear height of 32 feet, limiting racks to splits the storage with 24 pallet posi-
The decision was made to go with four levels. That was also the maximum tions deep on the right side and 22
drive-in racks throughout the facility, vertical reach for the counterbalanced pallet positions deep on the left. Seven
SKUs are stored in this section. To store pallets, a truck simply drives They have noticed that a choke point
Two pallet sizes, 36 x 36 inches and into the designated storage lane as far is moving pallets in and out of over-the-
40 x 48 inches, can be stored in the forward as possible, dropping off the load road trucks at the docks. It simply ties
high-density rack. In fact, the design can at that location. The driver then backs up more time than desired to maneuver
accommodate both sizes at the same time. the truck out of the lane to drive to the the loads with conventional lift trucks.
next assignment. Reed says they’re now looking at
How H2 operates Product picking is basically the automation at the docks. A leading
Operation of the facility is fairly same process but in reverse in terms of possibility is automatic guided vehicles
straightforward: pallets in, pallets out. load handling. (AGVs) that would load and unload
It runs two shifts, six days a week. In an “The drive-in rack is really easy for over-the-road trucks. On the delivery
average week, H2 moves in and out 100 the driver to maneuver a load. There is side, they would position pallet loads
to 130 truckloads of pallets or about no complexity to the putaway or pickup for pickup by the counterbalanced
150,000 cases. operation because the rack is so simple,” trucks. On the shipment side, they
Coke gets double duty out of every lift says Reed. would pick up loads left by those
truck run, moving two pallets at a time. trucks. The idea is to free up trucks for
A double-shifter attachment handles two Looking to the future putaway and picking of loads.
pallets side by side. The first six months of H2’s operation in If AGVs were added to the operation,
Lift trucks drive into standard over- its new layout has certainly been event- that would be a first for Coca-Cola Flor-
the-road transport trucks to pick up two ful. But, already Reed and others are ida. And in that case, it would be
pallets. Putaway is directed by Coke’s looking at what can be done to make it entirely in keeping with other innovative
warehouse management system. even more efficient. firsts at H2.
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MODERN productivity solution
By Josh Bond,
Senior Editor
Online retailer graduates

to high-volume automated
packaging and fulfillment
A range of automated packaging equipment options enables
cost-effective, speedy fulfillment even during peak periods.
Even a partially automated approach led to slow order fulfill-

ment. The company's conventional packaging system required
a checker to manually place product in a box, adhere a shipping
label and put it on a conveyor. Another team would add void fill
to protect the product and the box would be sealed with tape.
“Peak season shopping can result in up to 10 times the
normal sales volume for many days in a row, which strains ful-
fillment capabilities,” explains Dilan. “In just five weeks during
the holidays, the company’s fulfillment operations had to work
16-hour days, seven days a week to meet the demand.”
In 2015, the company invested in new automated packaging
lanes (Systems Technology) with compact, automated parcel
packaging machines. The conventional packaging lane is still
F ragranceNet.com is a fast-growing online retailer of dis-

counted brand name fragrances, skincare, makeup, hair-
care, aromatherapy and candles. The company has doubled
used for larger items and gift sets sold in higher volumes during
the holidays. The new equipment helps to cost-effectively scale
up from manual to semi-automated to full automation as growth
sales annually for years, shipping more than 30 million pack- continues. It can be used to package up to 20 orders per minute
ages and selling more than $1 billion in beauty products since and can reduce labor up to 50% or more, producing an ROI in
1997. After recognizing its manual packing and fulfillment 10 to 24 months. The automated packaging system can also
process could not keep up, the company transitioned to high- package items on corrugate base pad using shrink or stretch film
speed, automated packaging operations. without void fill. Contents may be totally random in size and
“I come from a corporate background at a Fortune 50 com- shape, and may be any combination of products.
pany where if we had a 2% sales increase, we flew to South The packaging system uses two carton sizes. During most of
Beach for a party,” says Hector Dilan, FragranceNet’s director of the year, the majority of sales are single items or several smaller
warehouse operations for the last six years. “But our e-commerce items in a single package. When needed, each line can be
sales have doubled here every year since the day I was hired.” changed to adjust to larger packaging in as little as 10 minutes.
Symptoms of the growing pains included orders that sat in bins The picking system recognizes which lane should be used,
for days before leaving the warehouse, high manual labor costs and small or large, based on the items in the order. Shipping labels
high packing material costs. Staffing up to meet peak holiday sea- are automatically printed, applied and verified.
son was an even bigger challenge, particularly when 50% to 80% “The process helps us process our high-volume orders very
of annual sales are made between Black Friday and Christmas. quickly,” says Barbara Porter, FragranceNet.com’s chief tech-
The company ran extra shifts and hired large quantities of people nology officer. “Today, waiting two days to see order tracking is
requiring training for the 30 to 60 days they were needed. unacceptable.”
By Josh Bond,
Senior Editor
3PL’s mobile robot fleet helps

manage disruption and growth
Robots can be shipped between five facilities to manage velocity
and ensure redundancy throughout the network.
D M Fulfillment Services is a third-party logistics (3PL)

company providing omni-channel fulfillment and dis-
tribution solutions for manufacturers, merchants and trading
partners. Business has grown significantly in recent years, and
in 2018, the company almost tripled its total square footage
through a series of building expansions. At the same time,
the company re-evaluated its picking and packing operations.
To optimize current facility layout and remain flexible going
forward, the company deployed a fleet of mobile robots to
support picking and packing of small packages.
Founded eight years ago, DM Fulfillment is one of two
subsidiaries. The second is Supplies Network, which has has seen an influx of customers who previously sold their
30 years of experience distributing a range of printer-related products on Fulfillment By Amazon, which recently sus-
products, including toner, ink and copiers. DM Fulfillment pended processing of “non-essential” items. Automation
now operates five highly automated fulfillment centers. has enabled the company to keep warehouses open while
Greg Welchans, president and CMO of distribution efficiently onboarding new customers, Welchans says.
management, identifies three main reasons for pursuing “People come in every day, and thankfully we’ve been able
mobile robots. First, he sought to improve productivity and to keep them employed. If it weren’t for these capabilities our
pick velocity to remain competitive with other online retail- employees would be hurting right now,” he adds. “Automation
ers. Second was to alleviate the pressure of hiring employ- has allowed us to stay in business, and not just that but to stay
ees. It’s only becoming harder find human capital to pick efficient as we have ever been.” Each warehouse is a replica of
product, Welchans says, so the third objective to reduce the other, with redundancy of inventory and procedures. Peo-
training time was that much more important. ple working in one know how to operate in another. If some-
Before deploying the new mobile robots (6 River Sys- one gets sick, it could result in a closure of several days. If that
tems), the distribution business had been handling roughly were to happen, the network can automatically reroute orders
95% small packages. This required very little floor space to another location to continue business as usual.
at facility docks since conveyor extended right into truck Unlike with fixed infrastructure, the robots can be
trailers. These layouts were challenged when the company shipped between facilities to increase velocity. When they
started selling a lot of nonconveyable hardware—some the arrive, each robot will automatically connect to the net-
size of washing machines. work and be tapped into the system to begin work. It’s as
“We needed a lot more floor space at the docks to stage simple as turning on a phone, Welchans says.
product for delivery and receiving, and conveyors got in the DM has deployed 113 units throughout their distribution
way of that,” Welchans says. “Because we can reconfigure centers, and the first facility has already seen a 38% increase
the robots on the fly, it gives us a whole lot of flexibility on in pick velocity. It takes around 30 minutes to train a new
how we ultimately fill the trucks.” employee on the system. The robots have also contributed to
In the wake of the Covid-19 pandemic, the company an improved turnover rate that is now less than 10%.
By Josh Bond,
Senior Editor
Mobile computing solutions

modernize warehouse operations
Supported by Cloud-based WMS, new computers, tablets,
scanners and printers help fill orders quicker, streamline
processes and improve inventory management.
S addle Creek Logistics Services is an omni-channel supply

chain solutions and third-party logistics (3PL) provider.
As the company grew and evolved, operational complexity
increased. To handle expanded omni-channel business, the
company installed a new Cloud-based warehouse management
system (WMS). It soon found that its legacy devices, although
reliable, didn’t work as well with the Cloud-based WMS. After
deploying hundreds of new mobile computers, tablets, bar code
scanners and industrial printers, the company optimized hard-
ware performance and productivity.
Saddle Creek employs more than 4,000 associates across a
network of 70 buildings totaling 22 million square feet. It pro-
vides customized omni-channel warehousing, fulfillment and
transportation for customers in various market verticals through- flexibility of the mobility
out the United States. The company selected its Fort Worth platform, Hollis says teams
operation—one of its largest omni-channel locations—for the started using devices with new form factors, like wearables,
first pilot of new devices (Zebra Technologies) because of the smaller phone-sized devices and tablets. Hollis adds that the
diversity of customers, products and processes in the facility. company had previously experimented with some light-duty
Tony Hollis, director of technology and innovation for Saddle tablets with little success. The new industrial-grade tablets
Creek, remembers a quick and positive response from associ- were a substantial improvement.
ates and management. From that quick win, deployment grew “We all have experiences with tablets at home, so it was
and spread throughout the Fort Worth facility and others. In appealing from a training perspective,” Hollis says. “We’re now
addition to leveraging recent advances in CPU performance, using vehicle-mounted tablets with great success. Aside from
Hollis says the new devices also improved human interface fac- the user experience, repair and maintenance are much easier
tors that drive further efficiency and productivity. because you can readily pop the tablet out of a mount.”
“Associates gave us immediate feedback that they really Hollis says the company is now evaluating tablets for sup-
enjoyed the user interface because it’s simple and ergonomic,” port roles like inventory control, dock operations and manage-
Hollis says. “For instance, the imager is angled, which reduces ment applications.
arm movements when scanning. It’s a simple change, but asso- “A lot of the hardware is also multi-modal, so we have the
ciates particularly enjoyed that, and it made the process easier.” potential for a Swiss army knife approach,” Hollis says. “Instead
The device provider’s software architecture allows Saddle of single-use devices, we can tailor mobile hardware for the
Creek to seamlessly integrate data across devices from the customer’s needs. There are lots of options and flexibility with
Cloud and the Cloud-based WMS (Softeon). Based on the these solutions, and they continue to make an impact.”
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THE EVOLUTION OF E-COMMERCE:
Shaping benefits from

It’s not only the growth of e-commerce, but also the ever-tightening delivery
timeframes that have logistics pros eyeing emerging technologies like
artificial intelligence, blockchain and the Internet of Things. The challenge
is to determine which of these can alleviate concerns like spiraling
transportation costs and pulling together final-mile delivery resources.
BY ROBERTO MICHEL, EDITOR AT LARGE
T
he march of e-commerce now has Amazon advertis- At the same time, IoT is being used for reasons such as
ing two-hour food deliveries in select cities. In this predictive maintenance over vehicle assets and in conjunc-
environment, more companies face pressure to deliver tion with AI to better pinpoint estimated times of arrival
goods at a faster pace, all while keeping costs under control. (ETAs). And while the new technologies still need to
To cope, many organizations are pinning their hopes on mature to shake the “emerging” moniker, it’s also apparent
emerging technologies such as artificial intelligence (AI), that organizations can start leveraging most of these tech-
autonomous mobile robots (AMRs), blockchain and the nologies today.
Internet of Things (IoT). But when will these “emerging”
technologies form practical applications that solve logistics AI’s many uses
pain points? Today, it seems that AI is on everyone’s lips. The reason: AI is a
To find out how these emerging technologies are evolving technology with broad scope, explains Chris Striffler, a senior
into logistics relevance, we talked to top consultants and manager with Clarkson Consulting. “AI and machine learning
analysts. We found that AI is already being applied to pro- (ML) have broad applicability, so we’re seeing a lot of traction
cesses such as transportation routing decisions and freight around those,” he says. “By contrast, blockchain has strong
matching, sometimes within supply chain control towers. potential in areas including traceability and contract manage-
A SPECIAL SUPPLEMENT TO:
emerging technologies
ment, but it doesn’t have the broad applicability that AI has.” “I think the first step on the journey is setting up control
AI can be thought of as next-level analytics that constantly tower environments,” he says. “The second evolution is
sifts through Big Data to arrive at optimal decisions. A subset of applying AI to be able to fully leverage the data essentially
AI is ML, which is able to recognize data patterns, learn from being collected by the control tower.”
them, and come up with recommendations on ways to save costs Within some larger enterprises, there’s a centralized
or improve service levels. With some AI projects, AI output can analytics group working on AI projects and other projects
automatically trigger decisions to be executed within solutions that tap emerging technologies. These enterprises tend to
like a transportation management system (TMS). be quite forward thinking about AI, but small to mid-sized
Within the TMS domain, AI can churn through transac- companies can also work with consultants to rapidly deploy
tional history, current pricing data from carriers, along with AI within “proof for value” projects, says Striffler. “Frankly,
current weather and traffic data to make better freight and logistics and freight are a great place to start with a use
routing decisions, explains Michael Daher, a principal and case,” he says. “That said, it’s smart to view AI not just as a
transportation practice leader with Deloitte Consulting. tool for point solutions, but as part of a larger strategy.”
Daher adds that many clients are layering AI capabilities AI is being applied to freight management challenges
into supply chain control towers—systems that centralize by C.H. Robinson, a third-party logistics (3PL) provider,
logistics data and shipment visibility. according to Tim Gagnon, vice president of analytics
According to Daher, AI’s output can automate better deci- and data science for the company. “We have effective AI
sions around load planning, mode selection and carrier selection, solutions embedded in our pricing, tender acceptance,
says Daher. “By leveraging AI to help automate decisions in freight matching and visibility services,” says Gagnon,
these areas, the managers are able to focus more attention on who heads up C.H. Robinson Labs, an innovation incu-
the strategic nature of their supply chain management network.” bator for the company.
Deloitte sees logistics evolving toward three pillars: con- Gagnon explains that AI capability can learn from the
nected communities, holistic decision-making and intelligent data and processes it analyzes, and be used within a control
automation. AI is central to holistic decisions, Daher says, tower. “What excites us most about these solutions is that
but it also overlaps nicely with supply chain control towers. they can effectively learn from millions of decisions and
A S P E C I A L S U P P L E M E N T T O M O D E R N M AT E R I A L S H A N D L I N G
outcomes to develop more effective judgements of risk and Blockchain has various pilot projects or consortiums
reward, ultimately learning to better efficiency, visibility and working to prove its supply chain value, including Walmart’s
reliability for our customers,” he adds. program to trace green leafy produce supplies, and the
Blockchain in Transport Alliance (BiTA). A bit more time
IoT plus analytics and broader participation is needed for blockchain to really
The IoT, when combined with analytics, is helping organizations take off, says Striffler. “Organizations are starting to dip their
with issues such as asset uptime and real-time knowledge over toes into the water with blockchain, but it needs that critical
the location or condition of shipments. It’s the combination of mass to be fully effective. We might be a couple of years
analytics with IoT-connected sensors that brings the benefits, away from that point.”
says Ryan Kauzlick, a vice president for consulting firm enVista.
“If you’re collecting all of this data, you’ve got to understand what Last-mile evolves
it actually means, which is where analytics comes in,” he says. The growth of same-day—and in some areas two-hour—deliv-
Top IoT use cases include predicting equipment failures, ery windows is making “last-mile” processes a focal point. In
protecting the safety and quality of “cold chain” distribution terms of software for last-mile, the trend is toward a more
along with asset and associate tracking, according to Kauzlick. holistic approach that looks beyond tactical scheduling, routing
“Where the IoT can really begin to be value-enhancing is when it and management of deliveries, according to Bart De Muynck,
can predict when and where these failures will occur, so you can research vice president for analyst firm Gartner.
change or refocus procedures,” says Kauzlick. “Last-mile solutions were in the past more purely focused
In some IoT applications, multiple data sources may need on the transportation part, but now the evolution is toward
to be fed into a predictive analytics platform, says Kauzlick. a more holistic view that can be termed last-mile delivery
Fortunately, analytics platforms from Microsoft and others are orchestration,” says De Muynck. “As part of this evolu-
getting easier for organizations to use without having teams of tion, software vendors are offering systems that can help
programmers working on a solution for months. improve the customer experience.”
Kauzlick says that his team often leverages Microsoft’s Vendors with monikers such as “delivery experience man-
predictive analytics platform. “These platforms are absolutely agement” address this need to gather information on what
lowering the barrier of entry for the analytics side of IoT,” he customers expect from e-commerce deliveries. The idea is to
adds. “They allow an organization to create a data set that is fine-tune the experience, says De Muynck, to keep customers
trusted, and that you can then easily reach into for analytics.” for the long term. “It becomes like a feedback loop where
you can manage everything involved with the delivery so the
Blockchain momentum next time a customer places an order, you’re able to provide a
When it comes to all of the details involved in moving goods much better experience.”
across borders and recording changes to chain of custody Traditional routing and scheduling solutions for delivery
over goods, blockchain is seen as an ideal technology. That’s fleets have been around a long time and continue to be used,
because it’s a digital ledger that lives in the Cloud where but the last-mile landscape now also involves “crowd-sourced”
partners can access information easily without corrupting it. delivery drivers, as well as established parcel delivery compa-
These characteristics make blockchain ideal for traceability, nies. More use of drop-off kiosks and pickup locations adds
storing cold chain data, proof of delivery, or contract details further options to last-mile scenarios.
involved with global trade, says Striffler. The added complexity is giving rise to vendors that offer what
According to Daher, one of the biggest applications for amount to “last-mile delivery orchestration platforms,” says De
blockchain is removing friction from Custom clearance. A Muynck. These solution sets span multiple functions including
blockchain could hold common, easily verifiable data on managing crowdsourced drivers, with the aim of helping com-
details like bills of lading, certificate of origin, insurance or panies figure out the best last-mile options. “From a technology
invoicing. “Right now, there is a lot of time and administrative perspective, we’re starting to see a new type of application,
resources invested in Custom clearance that blockchain could which is these last-mile orchestration solutions,” he says.
help reduce,” says Daher. And, e-commerce players—as well as online grocery com-
A S P E C I A L S U P P L E M E N T T O M O D E R N M AT E R I A L S H A N D L I N G
panies—are experimenting with small autonomous delivery shortage has made this extremely difficult to do under manual
robots, while Amazon and others have experimented with small or semi-automated methods.
aerial delivery drones. Currently, says De Muynck, such use These two key challenges are why autonomous mobile ro-
of delivery bots and drones remains experimental and would bots (AMRs) are widely seen as one of the main technologies
face regulatory hurdles and cost effectiveness concerns, but that help supply chains with e-commerce. Bringing in AMRs
it’s inevitable that companies will need to continue to test such is simply seen as a tactical necessity, explains Remy Glais-
technologies to drive down costs as delivery ner, a research director for analyst firm IDC.
windows get tighter. “Labor availability is a big challenge,” he says.
“Every time delivery expectations get short-
Companies “Basically, many operations simply can’t find
ened, we see increasing costs, so everyone is mentioned in enough people at the local level, which drives
looking for those technologies that can either this article operations to look at robotics.”
provide a way to either bring down that cost of Glaisner estimates that across all DCs,
• C.H. Robinson
delivery, or provide the customer with a better the current penetration rate for AMRs is
• Clarkson Consulting
experience,” says De Muynck. “Ultimately, if somewhere between 1% and 2%, making it
• Deloitte Consulting
you can provide a better customer experience, early days for AMRs. That said, close to 60%
• enVista
some customers are willing to pay for it.” of companies are considering robotics, he
• Gartner
adds.
• IDC
Autonomous trucks Once an operation does roll out robotics,
Autonomous trucks continue to draw interest it’s typical that key metrics are improved by
from investors as well as companies that need to find ways roughly 20%, adds Glaisner. This creates what he calls a
to get goods to consumers quickly and cost effectively. Com- “new normal” in which the operations begin to see steady
panies developing autonomous truck technologies include benefits in areas like order accuracy and more predictable
Alphabet/Waymo, Embark, TuSimple and Starsky Robotics. cycle times.
Rather than fully replacing humans with fleets of “driver- “Initially robotics help solve the issue of not being able
less” trucks, says De Muynck, a more likely near-term scenar- to find enough staff, but after they’ve been in use for a
io will be to pair autonomous trucks with human drivers to while, it tends to set up a new normal for the performance
extend range and lower costs. The human driver could handle of an operation,” Glaisner says. “That is when managers
urban environments and loading/unloading interactions, while realize that, yes, we can actually grow our business or serve
the autonomous vehicle handles the driving for long stretches customers better thanks to robotics being deployed in the
of highway. operations environment. Mobile robotics can be transfor-
Assuming regulations over driver rest could be ironed out, mative in that they can help move the warehouse envi-
this pairing of human drivers and autonomous trucks could ronment from being more purely a cost center concern to
keep assets rolling to effectively speed up transit times. In being a source of value generation.”
some regions, this might eliminate the need for additional
warehouses to serve customers for next-day deliveries, notes Overlapping benefits
De Muynck, which would offer a major cost savings. Ultimately, how various emerging technologies can help
“This team model, in which one team member is a with the challenge of e-commerce is more than deploying
human driver and other the autonomous truck, could help each one as an isolated technology. They tend to overlap in
move more products more quickly and at a lower cost than a good way. IoT needs predictive analytics and AI, while AI
is possible with conventional trucks,” adds De Muynck. and ML are also baked into AMRs and autonomous trucks.
You don’t to pick and choose from a list of emerging
The new robotics normal technologies—you might blend ML with IoT to understand
With the time pressures and extensive picking of small items the operational implications of massive data sets, Striffler
involved in e-commerce, warehouses are under intense pres- points out. “There can be strong synergies from imple-
sures to accurately get orders out the door rapidly. The labor menting these technologies together,” he adds.
FOCUS ON AGVs & mobile robots
Modular AGV solution for repetitive

transport tasks
Created for the staging and transportation of pallets in production
and warehousing operations, the Compact is a modular AGV solu-
tion that’s especially ideal for material transportation tasks that
are repetitive, particularly during multi-shift operations. It primarily
accommodates the point-to-point transferring of pallets, racks, rolls,
skids and tubs, using automated pick-up, transportation and drop-
off. Providing users the functionality of typical AGVs, the Compact
has a more modular, pre-engineered format, which can be used for
low- and mid-capacity applications. All Compact offerings also have
common frame structures, along with drive modules that load handling devices are mounted to. With formats ranging from
counterbalanced fork, to straddle fork, to tugger, the Compact also has standardized, on-board vehicle control software
and system control software, leading to quick, simple configuration. Dematic, dematic.com.
AGVs enhance navigation

Equipped with natural features navigation, the M4A Mouse, a
new model of AGVs, offers users quicker on-site setups with
safer and more accurate navigation (within 8 mm) through
facilities. To do so, the AGVs use perception systems that fea-
ture lasers and sensors, which map their travel paths and sur-
rounding environments. Also equipped with automatic battery
charging capabilities that enhance uptime and throughput, the
AGVs can navigate to charging stations and be fully charged
(from virtually no charge)—without any assistance from humans—in four hours. Featuring velocity-driven
LIDAR safety fields and dual LIDAR scanners, the AGVs also improve the efficiency and safety of users’
operations short- and long-term. Bastian Solutions, bastiansolutions.com.
AMR navigates in tight spaces

Traveling at up to 4.5 mph, the MiR250 collaborative autono-
mous mobile robot is lower and narrower than many AMRs. It
can be navigated efficiently and effortlessly in (and through)
limited spaces, from door openings to small elevators.
Powerful, robust and user-friendly, the MiR250 is the newest
member of the supplier’s fleet, joining the MiR100, MiR200,
MiR500 and MiR1000. Featuring artificial intelligence, along
with various other safety features, the MiR250 also com-
plies with a variety of safety standards, including the EN
1525:1997, the B56.5-2012 and the ISO/FDIS 3691-4. The vehicle can be charged
twice as fast as other smaller-sized mobile robots. Mobile Industrial Robots (MiR),
mobile-industrial-robots.com.
Tuggers and pallet jacks charge in 4 hours

Two AMR options—tuggers and pallet jacks—offer users self-driving vehicles for
materials handling projects. The tuggers, which are 54 inches high and 60 inches
long, weigh 1,647 pounds and travel up to 3.3 mph. Their current maximum pay-
load is 9,920 pounds at 3.3 mph, as they support an array of cart types and train
lengths. The pallet jacks are 115.8 inches long and 81 inches high. They weigh
2,164 pounds, travel at a maximum speed of 5.1 mph and have a maximum pay-
load of 7,936 pounds (at 5.1 mph). Compatible with bottom boards, they also have
flexible pallet detection. Each tugger and pallet jack can be charged in four hours,
as they’re compatible with three power sources: hydrogen fuel cell, lead acid and
lithium ion. Vecna Robotics, vecnarobotics.com.
Counterbalanced AGV
Featuring free range navigation and laser safety sensor technology, the MaxMover coun-
terbalanced AGV has been developed for an array of industrial logistics applications.
It can transport various types of loads—from boxes and carts, to pallets and racks—in
manufacturing and warehousing facilities. It requires minimal maintenance, lowering
its total lifecycle costs. Due to each of these features, the counterbalanced AGV offers
users a solution that enhances safety, improves logistical processes and nearly eliminates
any potential material damage as they conduct operations in facilities operating 24/7.
Oceaneering, oceaneering.com.
Automation top module increases AMR usability

By combining Kingpin, an automation top module, with their Vectors (600-pound payload capacity
AMRs) or MAV3KTMs (3,000-pound payload capacity AMRs), users can conduct two essential jobs with-
out requiring a fleet of lift deck robots or a fleet of cart connecting robots. First, they can automatically
load and unload payloads (lift deck robots are no longer necessary). And, they can
connect to various carts (without using any cart connecting robots), leading to higher
flexibility as they conduct operations. At the same time, users will also have 3D per-
ception, 360-degree safety lasers, autonomous navigation and omni-directional move-
ment. Additionally, dispatcher software can also be used for robot setup and manage-
ment, further enhancing the Kingpin’s, Vector’s and MAV3KTM’s usability, so they can
be easily used by employees. Waypoint Robotics, waypointrobotics.com.
AMR optimized for bulky and heavy items

As an addition to the LD Series of AMRs, the LD-250 can carry payloads that weigh
upward of 550 pounds. Designed with a robust structure, the AMR has been optimized
for bulky and heavy items, such as automotive seats, transmission blocks and large pack-
aging materials. Aside from carrying heavy items, the LD-250 also enhances the flexibility
and optimization of users’ material transport systems, as they can better control multiple
mobile robots—with various payloads—through one system with the Fleet Manager.
By integrating the LD-250 with the Fleet Manager, users can manage battery charging
requirements, traffic and vehicle navigation for fleets that feature up to 100 robots. In
addition, the robot is highly customizable with adaptive materials handling mechanics, courier systems and
special conveyor tops. Omron Automation, automation.omron.com.
AMR offers hardware and software features

Developed to meet the ever-increasing needs of omni-channel order fulfillment, a next generation
of AMRs, known as LocusBot 2020, offers users a variety of hardware and software features. The
AMR has a navigation and obstacle recognition software stack, along with an expandable pow-
ered accessory port for on-board printers and scanners. Additionally, it provides users flexibility
to use an assortment of container types, such as picking directly into flip-top totes, garments on
hangers, large cartons and shipping cartons. It offers omni-channel task interleaving solutions,
leading to more efficient e-commerce, retail and wholesale picking scenarios. As a result of these
features, employees’ productivity may increase, as they’ll have the ability to meet customers’
demands more effectively. Locus Robotics, locusrobotics.com.
Single-direction AGV system travels nearly 120 fpm

A single-direction, custom, bolt-on automatic guided vehicle system, the
FH-A35046 uses a recycled and refurbished drive unit, along with a control
box/components and photo eye, which matches up with a new conveyor,
frame, HMI and opportunity charging system. Cost-effective, the 83-inch x
36-inch AGV has two powered, 36-inch high conveyor decks for automatic
load transfers. Featuring a heavy-duty, fabricated steel base for strength
and firmness, the AGV has forklift tubes integrated into its frame’s design,
enabling easy and safe lifting. Traveling up to roughly 115 feet per minute and
offering a load capacity of up to 800 pounds, the AGV incorporates a 24-volt
system powered by two covered 12V AGM batteries. Creform, creform.com.
AMR integrates
robots into
every shelf
The Auto Shelf features
a fully patented design,
which integrates robots
into every shelf, an
offering that’s unique
in AMR systems. Due
Drag-and-drop development toolkit to this feature, the
Workflow Builder, a drag-and-drop development toolkit,
Auto Shelf provides
enables users to implement flexible automation within their
users with fast pick
distribution, fulfillment and manufacturing facilities in a more
speeds, along with an
cost-effective and timely manner than fixed automation or
improvement in inven-
traditional AMRs. Based on the Blockly language, the toolkit
tory accuracy and a short learning curve. The time
offers users an intuitive, visual toolkit they can use to install
that conventional AMR systems once spent on lifting,
flexible automation in days. They can also reiterate the
carrying, moving and dropping shelves is eliminated.
automation to improve workflows, alter workflows as needs
Every shelf moves and brings products to pick sta-
change and even integrate the automation into warehouse
tions themselves—not only increasing speed, but also
execution systems and warehouse management systems.
decreasing human errors. This self-driving unit can run
Each of these alternative usages can be conducted in-house,
24/7—whenever shelves are needed. Prime Robotics,
and users don’t have to seek services from any third-party
primerobotics.com.
resources throughout their implementations. Fetch Robotics,
fetchrobotics.com.
AMRs improve sorting accuracy and efficiency

Equipped with attachments that have been designed to enhance users’ unique material transport
and order picking needs, AMRs can transport a variety of shipping cartons and totes. Able to func-
tion like autonomous, mobile put walls and picking carts, the AMRs are fully integrated with pick-
to-light, WES and WMS, along with other types of warehouse automation. With pick- and put-
to-light technology, the AMRs can also enable users to sort items in a highly efficient, organized
manner, as they’re sorted in a precise quantity, as well as in a proper order. After picks are final-
ized, the AMRs will then transfer filled cartons and totes to put walls, along with other areas. Due
to this automation, users have more time to focus on picking. Matthews Automation Solutions,
matthewsautomation.com.
AMR tugger with 15,000-pound towing capacity

Due to its modular design, the Max-N15 tugger is an autonomous mobile robot that can
easily and safely pull heavy payloads—capable of transporting up to 15,000 pounds.
And, due to its patent-pending, modular design, the Max-N15 provides users a common
base that can be adapted for a variety of manufacturing and warehouse materials han-
dling tasks, using modular attachments. For instance, a fork truck can be transformed
into a tugger one day and then become a fork truck again the next. As a result, users no
longer have to purchase entirely different systems for different applications—they can
now transform one vehicle or even a fleet of vehicles to accommodate ever-fluctuating
work environments. AutoGuide Mobile Robots, agmobilerobots.com.
Robotic lift trucks

To enhance workflow, improve flexibility and potentially
π
lower costs, users can employ four robotic lift trucks: the
Counterbalanced Stacker, S1.0-1.5C; the End Rider, B80ZHD;
the Reach, N35ZDR2; and the Tow Tractor, LO7.0T. Each lift
truck varies by capability, from offering users 2,000- to 15,000-
pound capacity to depositing and removing pallets from a SHIPPING SUPPLY SPECIALISTS
second or third level, to depositing and removing pallets
as high as 30 feet. They all offer users common robotic fea-
tures—curtain lasers (for obstacle detection), geo-guidance
lasers, optional bar code readers and user interfaces that are
equipped with intuitive touchscreens. The vehicles have visual
and acoustic warning indicators, emergency stop buttons,
chassis-first laser scanners (for obstacle and pallet detection)
and tillers, which can be activated to stop trucks immediately
so they return to manual modes. Hyster, hyster.com. HUGE SELECTION
OF PALLET RACKING
IN STOCK
ORDER BY 6 PM FOR SAME DAY SHIPPING
COMPLETE CATALOG
1-800-295-5510 uline.com
AMR capabilities’ expansion enhances integration

With an increased portfolio of AMR capabilities, users can now modify various target
applications, including conveyor supplements, detachable carts, forklifts and robotic arms.
With the proper management of AMR solutions control, particularly with facility software
applications, work can be allocated to ensure the solutions perform effortlessly with other
automated systems. And, to ensure AMRs are proactively serviced and remotely monitored
so systems can operate at their best, a Lifecycle Performance Services group is available.
Customers’ operations will benefit from the combination of application design, integration
expertise and innovative robotic technologies. MHS, mhsglobal.com.
Robotic lift truck retrieves loads up to 30 feet high

A dual-mode pantograph robotic lift truck can autonomously deposit and retrieve loads from a
variety of locations, including those as high as 30 feet. Due to this high-lifting capability, the truck
is especially ideal for distribution centers that are encountering diminished labor pools, along with
more pressure to increase vertical storage space so inventory growth (directly resulting from a rise
in e-commerce) can be accommodated. In addition to its high-lifting capability, the truck can also
reach into double-deep storage. To achieve these high lifts and deep reaches, the truck uses a com-
bination of sensors and 3D cameras. Through this combination, the truck offers utmost precision
and effectiveness at higher-level storage locations, even potentially exceeding operator-driven
trucks’ productivity. Yale Materials Handling Corp., yale.com.
COVER Vision-guided vehicle advances

automated material movement
YOUR ASSETS! Designed with a short mast structure, the
GT10 Series 7 Plus vision-guided vehicle
(VGV) is able to accommodate distribution
and manufacturing facilities that have height
restrictions. In addition to this shorter mast
structure, each VGV also comes standard with
auto-hitch capabilities and, to provide users
more functionality, features reverse sensing.
To enable users to automate their VGV battery
charging processes, the GT10 Series 7 Plus
also has auto-charge technology, which is inte-
Free Samples
grated into fleet management software. This
software monitors vehicle battery levels, sends
vehicles to charging stations automatically
“Protect People and Product” and schedules vehicles to return to production
With Rack Guard Safety Net after charges are completed. Due to this auto-
• Contains boxes • Resists sagging • Easy to install charge integration, the VGV is able to advance
automated material movement, particularly for
Installation video at /IndustrialNetting distribution, e-commerce and manufacturing
companies. Seegrid, seegrid.com.
1-800-328-8456 www.industrialnetting.com
050-1022 RACK G-4c_MMH.indd 1 2/18/15 8:37 AM
PRODUCT Showcase
Automated
packaging Platform allows users to
technology evaluate energy options
auto-boxes Incorporating a collection of energy solutions,
1,100 packages a new platform enables users to meet the com-
plex demands of the materials handling indus-
every hour
try from energy management requirements,
A high-velocity, auto-
to the environmental landscape, to evolving
mated packaging tech-
equipment now and in the future. Known as
nology, CVP Everest
Energy Solutions, the platform provides users
constructs, labels,
a variety of offerings: battery and alternative
measures, seals and weighs every single- or multi-item order
energy sources, chargers and accessories,
with hard or soft goods all in one seamless process. To do so,
environmental support, on-site consultation,
it uses a patented gluing system, which affixes a custom-fit
and service and repair, among others. Through
lid to every package. In addition, it provides single or dual
these offerings, users can increase productivity
induct stations (using either one or two operators) to generate
and improve operations. And, forklift dealers
high-volume speeds. At the same time, it also enhances opera-
can now conduct energy studies, which high-
tional efficiency, resulting in the removal of up to 20 packaging
light and identify efficiencies that will enhance
stations. And, due to its seamless process, the technology can
their overall operational throughput. Toyota
also auto-box 1,100 custom-fit packages on an hourly basis.
Material Handling, toyotaforklift.com.
Packaging by Quadient, us.packagingbyquadient.com.
7.5-ton and 10-ton capacity trolley

hoists have H4 duty rating We’re Working to Keep
In addition to the 3 Ton and 5 Ton RY series hoists that the Supply Chain Safe
were released last spring, users now have two more options
to choose from in the RY
Electric Wire Rope hoist
line: 7.5 Ton and 10 Ton
capacities. Developed with
performance and safety in
mind, the ultra-low head-
room trolley hoists offer
users an H4 duty rating for high
demand applications. Additionally,
standard configurations are certified
and listed to UL 1340 “Standard
for Hoists” and CSA 22.2 No. 33. Don’t replace it. Repair it!
Providing dual-speed variable fre-
quency drive control on the hoist and All Styles, All Punches, All Dimensions,
trolley, resulting in optimal speed adjustability, the trolley All Colors of Pallet Rack
hoists also have high-performance Magnetic Disc brakes. Repairs in as little as 20 minutes
Harrington Hoists, harringtonhoists.com.
Call Today! 815-723-7400
[email protected]
Visit us at MacRak.com
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ASSOCIATE
PRODUCT Showcase
Automatic solution enhances material flow

A fully automatic solution for item picking, particularly for the timely processing of
intricate orders, the A-Frame ensures users not only have the highest productivity
possible, but also have optimum material flow even during peak loads. Offering
optimal performance with high-volume orders that comprise fast moving, small
items that have similar packaging—from cosmetics and pharmacy boxes, to small
office supplies and tobacco—the A-Frame also provides a high level of flexibility.
The product channels are adjustable, thereby guaranteeing that two columns of
packages can fit in one dispenser. Aside from this adjustability, the A-Frame also
has a sensor that calculates the number of articles in columns and monitors items’
stock statuses so refilling errors are minimized. Inther Group, inthergroup.com.
Stacker is customized to individual applications

Built and engineered in the United States, the PDX50 custom stacker offers users high torque
drive/lift motors, a chassis comprised entirely of steel and a high strength, I-beam mast chan-
nel. In addition, it provides full, free lift construction, along with power steering. Featuring
48V Li-ion power—with more than 5,000-pound capacity and 10 gpm output for high perfor-
mance attachments—the heavy-duty stacker also has extended load center ratings, which
are available for applications like furnace loading or specialized coil, die and roll handling.
Customized to individual applications, from one truck to entire fleets, the PDX50 is ideal for
high-capacity applications with unique requirements that aren’t met by standard production
line units. Big Joe Forklifts, bigjoeforklifts.com.
Collision warning
Keep system features
Organized various upgrades
By decreasing or potentially
even removing blind corner
collisions that may occur
when forklift and pedestrian
traffic intersect, the Corner
Pro is able to produce a
safer work environment in
industrial settings. A new
model in an evolutionary
lineup of collision warning
systems, the Corner Pro offers users a variety of
upgrades, including a new shape and a compact
design that enhances sensors’ and warning lights’
angles, along with a clam shell body that increases
environmental resistance. In addition, the system’s
redesigned infrared detectors improve IR sensitivity
and increase consistency, along with the detection
zone range. Entirely self-powered, the Corner Pro
operates on three D-Cell batteries, as it has a bat-
Label Holders for Shelving & Racking tery life of at least 12 months. Sentry Protection
Products, sentrypro.com.
800.242.3919
www.aignerlabelholder.com
PRODUCT Showcase
RFID impact indicator traces damage

throughout supply chains
By combining impact-damage monitoring with RFID technology,
the ShockWatch RFID impact indicator can trace any signs of
potential damage within a supply chain and then identify any
inventory that may be affected. This impact-damage monitoring
is especially crucial for
industries like auto-
motive, where inven-
tory damage is more
Containers and totes are lighter, robust likely. Through the
Industrial containers in the Ultra Lite products line seamless automation
are not only light, but robust. Featuring a fiberglass of asset identification,
reinforced composite, the Ultra Lite containers and the ShockWatch RFID
totes are 40% lighter than typical fiberglass products. impact indicator not
Yet, they’re also stronger and more durable than usual only helps companies
thermoplastic products, as their fiberglass reinforced reduce the sources of damage within their supply chains—it also
composite is very sturdy, reliable and long lasting. Not decreases their inventory management costs. Highly affordable
only do the products withstand an array of tempera- and consumable, the ShockWatch RFID impact indicator offers
tures (from -60°F to 250°F), but they’re also resistant users a visual warning (as it turns red) and an electronic gauge
to various materials—for example, alkaline solutions, (when scanned with a reader) whenever damage is traced.
cutting oils and mild acids. Therefore, they’ve been able SpotSee, spotsee.io.
to offset the ever-rising shipping costs that customers
continue to encounter. Molded Fiber Glass Tray Co.,
mfgtray.com.
Safety glasses offer comfort and style

Premium Safety Glasses offer workers options so they’re
not only protected during their demanding activities, but
can also showcase their individuality away from work.
Designed so users don’t feel like they’re simply wearing
eye protection, Safety Glasses provide colorful frames,
fashionable designs, various lens options and all-day
comfort. As a result, they fit workers’ active lifestyles.
Kimberly-Clark Professional, kcprofessional.com.
mmh201703_Durabelt_qtr.indd 1 2/27/2017 10:36:25 AM
MODERN 60 Seconds with...
I think two other important
George Prest milestones were the founding of
CICMHE in 1952 and the Material
MHI Handling Education Foundation

in 1976. CICMHE is the College-
TITLE: CEO, MHI Industry Council on Material
LOCATION: Charlotte, N.C. Handling Education and represents
our relationship with college edu-
EXPERIENCE: Prest joined the
industry in 1977. This is his ninth cators. Since 1976, the Material
year as CEO of MHI. Handling Education Foundation
programs have supported more than
1,000 students and educators by
Modern: 2020 marks two mile- awarding over $3 million in schol-
stones at MHI. The organization is arships and grants. Education has
celebrating its 75th anniversary, ed to rename the show ProMat, which always been and continues to be an
and you’re finishing your term as is short for “Productivity Through important part of our mission.
CEO. Let’s talk about the anni- Material Handling.” They also decid-
versary first. Tell us how MHI got ed ProMat would be in Chicago on Modern: How has MHI evolved?
started 75 years ago. the odd years. The North American Prest: The core of the association is
Prest: The real starting date was Material Handling Show would be the Industry Groups. Back in 1945, it
1943, and during that period, a num- on the even years in Detroit and was basically industrial trucks, cranes,
ber of people came together and later Cleveland. In 2010, the board shelving and rack. Over the years,
collaborated to help the war effort. determined that the North American as technology has changed, groups
Two years later, in 1945, the Material show was ineffective, and Modex was have been added so we now have 17
Handling Institute was incorporated created. The inaugural Modex show Industry Groups under our umbrella.
as a not-for-profit in Pittsburgh, and was 2012 in Atlanta. The idea was to They develop American standards,
that’s where it remained until the differentiate it from ProMat by being do statistical research and promote
move to Charlotte in 1986. It was more of a supply chain, transportation education for their products.
formed as an American trade asso- and logistics show.
ciation for American companies, as In terms of the organization in Modern: What do you think MHI
there was no international presence the 1970s, international companies will look like five years from now?
at that time. Given the state of the started inquiring about being a part Prest: I’m really excited about the
industry when it was incorporated, of the shows, and the association’s future of the association and the
a lot of the focus was on lift trucks original bylaws did not foresee an industry. I wish I wasn’t aging out.
as they really were the backbone of international presence. To open the When I accepted this opportunity, I
the industry. show to international exhibitors, the had a vision of what I thought I could
Material Handling Institute changed bring to the table in terms of strate-
Modern: What were the important its bylaws to allow international gic and change management, so I
milestones over the past 75 years? companies to exhibit. Based on made a commitment to stay for 10
Prest: After the incorporation, the the desires of the Industry Groups years. Five years from now, I think
next important milestone was the at the time, the Material Handling we’re going to continue to see expo-
first National Material Handling Industry of America was created. nential change that will surpass
Show in 1948. It was an annual show In 2012, we unwound all of that what’s happened in the last 10 years.
that moved in a rotation to different and returned to our roots as MHI, What we do is core to our economy.
cities including Chicago, Detroit, the difference being we are now What’s always fascinated me is that
Pittsburgh, Cleveland and then back an international organization with there is nothing in the supply chain
to Chicago. In 1985, the board decid- members from 23 countries. that our industry doesn’t touch.
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WAREHOUSE: TECHNOLOGY: EQUIPMENT:

• Energy • Automation • AGVs
• Ergonomics • Data Capture • Containers & Totes
• Inventory & Picking • IoT • Conveyors & Sortation
• Lighting • Mobile & Wireless • Lift Trucks
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PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION, WAREHOUSING AND MANUFACTURING

Vargo and Körber announce alliance

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Beumer Group beumergroup.

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